Question

Advertising a. provides information about products, including prices and seller locations. b. has been proven to increase competition and reduce prices compared to markets without advertising. c. signals quality to consumers, because advertising is expensive. d. All of the above are correct.

Answer 1

d. All of the above are correct.

Step-by-step explanation:

Advertisement quite simply is the method or act of promoting/raising awareness for goods or services to potential customers.

The process of advertising involves providing details about the good or service being advertised while explaining why it would be in the best interest of potential customers to buy.

Advertising signals quality to consumer because it is expensive. It creates awareness to the public about a new product/service which in turn creates value to the potential buyers.

It has also been known to improve competition, thereby reducing the prices of the goods and making it subsidized.

All of the options are correct.