Empirical studies conclude that advertising
A) raises prices in all markets.
B) can reduce the prices of many goods.
C) reduces the prices on all goods.
D) has no impact on prices.

Question

Quizplus · Accepted Answer

Empirical studies have shown that advertising can increase the demand for a product or service, leading to higher sales volumes and economies of scale, which can ultimately result in lower prices for consumers. Therefore, advertising can reduce the prices of many goods. It is not accurate to say that advertising raises prices in all markets or that it has no impact on prices.

Empirical Studies Conclude That Advertising