Unformatted text preview: demand for water is much greater than the demand for diamonds. 4.9 An article in the Wall Street Journal notes that during the early 2009 the demand for Internet advertising was declining at the same time the number of Internet sites accepting advertising was increasing. After reading the article, a student argues: “from this information, we know that the price of Internet ads should fall, but we don’t know whether the total quantity of Internet ads will increase or decrease.” Is the student’s analysis correct? Illustrate your answer with a supply and demand graph....
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This note was uploaded on 04/18/2011 for the course ECON 1101 taught by Professor Rappoport during the Spring '08 term at Temple.
- Spring '08