Increasingly, instead of advertising in newspapers, individuals and firms use Web sites that offer free or inexpensive

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Increasingly, instead of advertising in newspapers, individuals and firms use Web sites that offer free or inexpensive classified ads, such as ClassifiedAds.com, Craigslist.org, Realtor.com, Jobs.com, Mon-ster. com, and portals like Google and Yahoo. Using a supply-and-demand model, explain what will happen to the equilibrium levels of newspaper advertising as the use of the Internet grows. Will the growth of the Internet affect the supply curve, the demand curve, or both? Why?

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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