(a) Explain how greater advertising by a firm may reduce the price elasticity of demand for its product. (25 marks)
(b) What factors determine the cross-price elasticity of demand? (25 marks)
(c) Explain why firms will always maximize revenue by charging a price where demand is unitary elastic. (25 marks)
(d) Explain why firms will always maximize profit by charging a price where demand is elastic. (25 marks)
(I need a detailed answer with some diagrams, examples, citations, references. Thank you very much.)