Read the article “Galbraith vs. Hayek” in which you learned about the Dependence Effect, which states that advertising convinces people that they need things that they donâ€™t really need. Then respond to the question posted on this forum.
Reply to this forum by answering the two following questions:
1) Which of the two well-known economists (Galbraith or Hayek) cited in this article do you most agree with regarding whether the market system (and firms like Apple) should be applauded for satisfying wants that the market itself has created? Why?
2) Respond with either a critique or defense of advertising. Some questions that might inspire your response include: Is society wasting resources when we spend them on advertising? Does advertising prevent competition or create more competition? Does advertising provide information or simply entertain?