Answer to Question #293448 in Macroeconomics for Nick

Question

Suppose people’s income drops to $10,000. How much would this firm have to increase its advertising in order to counteract the drop in income? (

Answer 1

Advertising plays a strong role in the economy: It provides useful information to consumers that tells them about product and service choices, as well as comparing features, benefits, and prices. With more complete information, consumers and businesses often choose to purchase additional products and services.