How does advertising of a product increase it's price in the market?

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1142661

2026-03-28 02:55

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Advertising increases awareness, which in turn increases demand, which then makes the product more desirable/harder to get, which then increases the amount that the provider can charge for the product, thus increasing the price that they ask for it.

The cost of advertising must be added to the price of the product. The larger, more expensive the advertising campaign, the more cost must be added to the price of the product.

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