Many firms advertise. What effect does advertising have on firmâ€‹ profits? One possible effect of advertising is to:_________

a. increase profits by decreasing the cost of production.
b. increase profits by shifting the demand curve for the product to the right.
c. increase profits by making the demand curve for the product more elastic.
d. increase profits by making the supply curve for the product more inelastic
e. increase profits by allowing the firm to produce the same amount of output with fewer inputs.

Marketing is simply all the activities necessary for a firm to sell a product to a consumer. Firm engages in marketing to make their brand or product known.

Advertising has a whole lot of effect in the society at large. There are economic effect, social effect and others.

effects of advertising on the prices of goods and service includes exerting an upward pressure on prices that is the Cost of advertising is passed along to consumers and Advertising makes us less price sensitive) and exerting a downward pressure on prices may lead to economies of scale and Lowers the cost of sales.

Social Effects of Advertising is that it is manipulative and promotes unnecessary consumption,Advertising makes us more intelligent consumers and promotes worthwhile social causes.