Question

An article in the Wall Street Journal noted that the demand for video Internet advertising was increasing at the same time that the number of Internet sites accepting advertising was also increasing. After reading the article, a student argues: "From this information, we know that the price of Internet ads should rise, but we don't know whether the total of Internet ads will increase or decrease."a. incorrect because the quantity of Internet ads will not change.b. correct because the price of Internet ads will decrease and the quantity of Internet ads will decrease if the shift in supply is larger and will increase if the shift in demand is larger.c. incorrect because the quantity of Internet ads will rise, but the change in price depends on the magnitude of the relative shifts of demand and supply.d. correct because the price of Internet ads will decrease and the quantity of Internet ads will decrease if the shift in demand is larger and will increase if the shift in supply is larger.e. incorrect because the quantity of Internet ads will unambiguously decrease when supply increases.

Answer 1

Answer:

Option C is correct

Explanation:

Quantity of internet adds is mutually exclusive with the price which is dependent on shift of demand and supply that is add fees or prices are website dependent .