Question 1
Referring to the
Economics in Practice on page 318: In recent years, some companies have concentrated on increasing their reputation for environmental stewardship, including spending money on green advertising to attract consumers who value this activity. A successful green advertising campaign will most likely ________ for products produced by the companies, resulting in a higher equilibrium price and a larger equilibrium quantity.
◦ increase the demand
◦ increase the supply
◦ decrease the demand
◦ decrease the supply
Question 2
The basic function of advertising, according to its proponents, is to assist consumers in making informed, rational choices.
◦ true
◦ false