Question

(p.32)Which of the following statements about how advertising affects price is true?
A.Advertising has a strong effect on the price of agricultural products such as leaf tobacco, soybeans and wheat
B.Advertising always increases the price of a productnever lowers it
C.The consumer who buys the product pays for the advertising
D.Advertising has had a significant impact on the prices charged by utilities
E.The amount typically spent on advertising is large compared with total sales

Answer

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