Advertising Elasticity of Demand | |
| The Input Parameters | |
|
Original Level of Advertising (£) |
100.00 |
|
Original Quantity (Q) |
100.00 |
|
New Level of Advertising (£) |
140.00 |
|
New Quantity (Q) |
130.00 |
|
Price of the Good (£) |
20.00 |
|
Cost of Production per Good (excl advertising) (£) |
7.00 |
| Outputs | |
|
The AED |
0.75 |
|
Original Total Revenue (£) |
2000.00 |
|
New Total Revenue (£) |
2600.00 |
|
Original Costs (incl of Advertising (£)) |
800.00 |
|
New Costs (incl of Advertising (£)) |
1050.00 |
|
Original Profit (£) |
1200.00 |
|
New Profit (£) |
1550.00 |
|
Change in Profit (£) |
350.00 |