Economics (AS & A Level) · May / June 2022 · Paper 12 · Question 8

A firm has a successful advertising campaign for a good. Which combination shows the impact on demand or supply and the associated reason?

1. Aa leftward shift in the good's demand curve, as increased advertising cost raises the price of the product and reduces its demand
2. Ba rightward shift in the good's supply curve, as the advertising cost of the firm increases
3. Ca rightward shift in the good's demand curve, as successful advertising increases demand
4. Da leftward shift in the good's supply curve, as successful advertising enables firms to sell more

As printed in the paper