6.3 Good Burger is a chain of franchised hamburger restaurants. The franchisees are required to contribute 4 percent of their revenue to the franchisor for advertising. Suppose that the franchisor uses half of the fund for advertising that boosts the demand for the chain’s burgers and the other half for advertising intended to expand the number of franchisees nationwide.

a. If the demand-enhancing advertisements are successful, how do they affect a franchisee’s price and quantity of hamburgers?

b. If the advertisements intended to increase the number of franchisees wind up substantially increasing the number of Good Burger locations, how do these advertisements affect an existing franchisee’s price and quantity of hamburgers?