The fact "advertising can increase demand" is illustrated with the story:1. Mrs. Nicholson owned a shoe shop that wasn't making much money.2. One day she had a sale but very few people came to the sale.3. The next time she had a sale she put up a sign in her window that advertised "20% off everything in the store."4. A lot of peole came into the store to take advantage of the good deal she offered.