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An article in the Wall Street Journal noted that the demand for Internet advertising was declining at the same time that the number of Internet sites accepting advertising was increasing. After reading the article, a student argues: “From this information, we know that the price of Internet ads should fall, but we don’t know whether the total quantity of Internet ads will increase or decrease.” Is the student’s analysis correct? Illustrate your answer with a demand and supply graph. Based on Martin Peers, “Future Shock for Internet Ads?” Wall Street Journal, February 17, 2009.

Business Economics, Economics

  • Category:- Business Economics
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