Question

what can you infer about the relationship between advertising and the price you pay for a product and/or service?

Answer 1

Well, the more that's spent on advertising, the higher the price of the good in a lot of (if not most) cases. Think about Arizona Iced Tea, it's only $1.00 and yet very popular, that's because they don't rely on advertising, so they don't have to raise the price to compensate for the costs that would go into it otherwise. 

I hope that helped in some way at least.

Answer 2

Advertising will be effective if its production and placement must be based on a knowledge on a public and skill use of the media. Advertise are based on consumer's behavior and demographic analysis of a market area. Hope this helps!!