Ask Question
27 September, 12:33

You interview with an athletic footwear manufacturer that has annual advertising expenditures of $32 million and total sales revenue of $100 million, and the firm selects the profit maximizing level of advertising expenditures. If the advertising elasticity of demand is 0.4, then you know that "Rule of Thumb for Advertising" implies that the demand for the firm's products is

+2
Answers (1)
  1. 27 September, 14:53
    0
    elastic.

    Explanation:

    The advertising elasticity of demand measures how sensitive a market and sales are to marketing expenses. Advertising elasticity is calculated by dividing the change in quantity demanded by the percentage change in advertising expenses. Generally products with low advertising elasticity tend to have elastic demands.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You interview with an athletic footwear manufacturer that has annual advertising expenditures of $32 million and total sales revenue of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers