Advertising Elasticity of Demand | |
| The Input Parameters | |
|
Original Level of Advertising (£) |
100.00 |
|
Original Quantity (Q) |
100.00 |
|
New Level of Advertising (£) |
120.00 |
|
New Quantity (Q) |
124.00 |
|
Price of the Good (£) |
20.00 |
|
Cost of Production per Good (excl advertising) (£) |
6.00 |
|
The AED is (when the AED is set by the user) |
1.20 |
|
Change in the Level of Advertising (%) |
20.00 |
| Outputs | |
|
The AED |
1.20 |
|
Original Total Revenue (£) |
2000.00 |
|
New Total Revenue (£) |
2480.00 |
|
Original Costs (incl of Advertising (£)) |
700.00 |
|
New Costs (incl of Advertising (£)) |
864.00 |
|
Original Profit (£) |
1300.00 |
|
New Profit (£) |
1616.00 |
|
Change in Profit (£) |
316.00 |