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