Economic Impact of Advertising

Step 1: Read the article Economic Impact of Advertising: What's the Controversy? (available Thursday after
debate is complete)
Step 2: Use the above article to reflect on your debate by answering the questions below.

1. What do you see as the 2 main arguments in the first side of the debate (Advertising makes products more
   expensive, by Ed Applegate) in the assigned reading listed above? That is, what are two reasons given for
   how advertising increases prices?
2. What do you see as the 2 main arguments in the second side of the debate (Advertising lowers prices for
   consumers, by C. Ann Hollifield) in the assigned reading listed above? That is, what are two reasons given for
   how advertising reduces prices?
3. What was your initial position on this issue (in the first part of the debate)?
   My initial position is advertising is bad for economics.
4. What did you find to be the most compelling argument on the opposite side of the debate (not in line with
   your initial position)? Why?
5. How would you state your position now? How, if at all, has it changed?

• Maybe even if you haven't changed sides, you may find that your position has been made more specific in
  some way.
• Or, if you haven't changed your position at all, why do you think that may be? What was it about the other
  side that just didn't convince you?

Sample Solution