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ivolga24 [154]
3 years ago
15

You are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How m

uch will you have to increase advertising in order to increase demand by 5 percent?
Business
1 answer:
Inessa [10]3 years ago
3 0

Answer:

20%

Explanation:

if the advertising elasticity = 0.25 and you want to increase the quantity demanded by 5%, you will need to increase advertisement by = 5 / 0.25 = 20%

The advertising elasticity measures how much does a change in advertising changes the quantity demanded of a product or service.  

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