150 word responses for each question.

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1. How does advertising benefit society? In what ways can advertising be
harmful? Give an example (YouTube link) of an effective advertisement
(that had a positive impact on demand).

2. Recalling what you have learned about elasticity, what can you say about
the connection between the price a monopolist chooses to charge and
whether or not demand is elastic, unitary, or inelastic at that price?
(Hint: Examine the marginal revenue curve of a monopolist. The fact that
marginal revenue becomes negative at low prices implies that a portion
of the demand curve cannot possibly be chosen.) Please include an
example with your posting.


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