A firm has a successful advertising campaign for a good.
Which combination shows the impact on demand or supply and the associated reason?
1 )
a leftward shift in the good’s demand curve, as increased advertising cost raises the price of the product and reduces its demand
2 )
a rightward shift in the good’s supply curve, as the advertising cost of the firm increases
a rightward shift in the good’s demand curve, as successful advertising increases demand
4 )
a leftward shift in the good’s supply curve, as successful advertising enables firms to sell more
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