I’m working on a Economics question and need guidance to help me study.
How does advertising benefit society? In what ways can advertising be harmful? Give an example (YouTube link) of an effective advertisement (that had a positive impact on demand).
2. Monopolies and Elasticity
Recalling what you have learned about elasticity, what can you say about the connection between the price a monopolist chooses to charge and whether or not demand is elastic, unitary, or inelastic at that price? (Hint: Examine the marginal revenue curve of a monopolist. The fact that marginal revenue becomes negative at low prices implies that a portion of the demand curve cannot possibly be chosen.) Please include an example with your posting.
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