If We Accept the Principle of "Caveat Emptor" - "Let

question 62

Essay

If we accept the principle of "caveat emptor" - "let the buyer beware," why then is there concern about the ethics of advertising. If the consumer is responsible to make the decision, is there anything to justify restricting the advertiser? Explain your view.

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Definitions:

Loanable Funds

The total funds available in the financial markets for borrowing, which come from savings and are used for investment.

Borrowed

Refers to funds or resources obtained temporarily from another party, typically with the obligation of returning or repaying the amount with interest.

Demand

The quantity of goods or services that consumers are willing and able to purchase at various prices during a given time period.

Rent Control

Government policies or laws that limit the rent landlords can charge for housing, intended to make housing affordable.