The purpose of Chapters 6 and 7 is to examine the various conditions affecting, respectively, the demand and the supply of advertising. This chapter begins by discussing what is unusual about the market in advertising. Next a possible meaning of supply and demand equilibrium in that market is presented. The remainder of the chapter examines how a variety of factors associated with either the characteristics of the consumer or of the product can affect the nature and intensity of the demand for advertising. In conclusion the question is posed as to whether more advertising is consumed or demanded than is economically optimal.
KeywordsData Variety Marginal Utility Purchase Decision Consumer Awareness Perfect Competition
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