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nasty-shy [4]
3 years ago
6

In a statement to Gillette’s shareholders, its CEO indicated, "Despite several new product launches, Gillette’s advertising-to-s

ales declined dramatically . . . to 7.5 percent last year. Gillette’s advertising spending, in fact, is one of the lowest in our peer group of consumer product companies." If the elasticity of demand for Gillette’s consumer products is similar to other firms in its peer group (which averages -4.5), what is Gillette’s advertising elasticity?
Business
1 answer:
castortr0y [4]3 years ago
7 0

Answer: ‭0.34

Explanation:

Gillette’s advertising elasticity tells of the impact that Gillette's advertising has on its demand.

Given the details in the question, the following formula can be used;

Advertising elasticity/ -Gillette elasticity of demand = Gillette’s advertising-to-sales

Advertising elasticity/ -(-4.5) = 7.5%

Advertising elasticity = 7.5% * 4.5

= ‭0.34

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Answer:

The correct answer is b. Generally, only applied for serious, deliberate misuse, where someone intentionally accesses data in order to do harm or for personal gain.

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3 years ago
If the nominal interest rate is 5 percent and the real interest rate is 2 percent, then the inflation premium is:________.A. 8 p
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Answer:

Inflation rate= 0.03 = 3%

Explanation:

Giving the following information:

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5 0
3 years ago
Which continent has the highest concentration of trade (i.e., trade among countries within a particular region)?
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Answer:

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During times of colonization, spices and indigo were imported to Europe as the continent was one of it's highest consumers.

With the advent of European Union, trade further strengthened as a common currency in the form of Euro was established. This eased out the process of trade.

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4 years ago
You have a credit card and the average balance on that card, year after year, is $4,000. The credit card company charges 21% ann
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Which one of the following is a working capital management decision? Select one: a. What type(s) of equipment is (are) needed to
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b. Should the firm pay cash for a purchase or use the credit offered by the supplier?

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3 years ago
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