If advertising enhances competition, it will tend to _______ prices and ________ quantities demanded.
A) increase; lower
B) lower; increase
C) lower; decrease
D) increase; increase

Question

Quizplus · Accepted Answer

Advertising enhances competition by informing consumers about the availability and benefits of products, which can lead to lower prices and higher quantities demanded as companies strive to attract customers.

If Advertising Enhances Competition, It Will Tend to _______ Prices