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"The Advertising Elasticity of Demand" icon

The Advertising Elasticity of Demand

The objective of this simulation is to illustrate how to calculate and apply the advertising elasticity of demand. The advertising elasticity of demand is a very important concept that can be applied across a range of areas in business studies. The advertising elasticity of demand measures how the demand for a good changes in response to a change in the level of advertising. It is calculated as the percentage change in quantity demanded divided by the percentage change in level of advertising. Also included are background notes and study questions.


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