All of these statements are true. Advertising can have both positive and negative effects on the pricing of goods or services, depending on the situation and context. It can increase competition and lower prices, but it can also create false notions of superiority and drive prices up. The impact of advertising on pricing remains a topic of debate within the field of economics and marketing.

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Advertising

Question 102

Multiple Choice

Advertising:

A) can cause price competition and drive prices down.
B) can cause perceived differences that don't exist and drive prices up.
C) and its effects are a hotly debated topic.
D) All of these statements are true.

Correct Answer: