Final answer:
Advertising is all about making people believe that a firm's products are different from another firm's products. It can either make a firm's perceived demand curve more inelastic or cause demand for the firm's product to increase.
Step-by-step explanation:
Advertising is all about making people believe that a firm's products are different from another firm's products. It can either make a firm's perceived demand curve more inelastic or cause demand for the firm's product to increase. In either case, a successful advertising campaign can lead to selling a greater quantity or charging a higher price, or both, and thus increase profits.