You work in the Economic Planning Department of a consultants, Adder Consult. You have been asked by the Managing Director to work in a small group with 3 other people to write a response to the following enquiry.

Company Name : We need to know
Contact Name : Dr J Jack
Company Address : Room 101, 77 Old Road, Bath, NW29

Given the initial output levels, original advertising is 100, original quantity is 120, the original price is 20, the costs per unit (inclusive of Advertising) is 6, the AED is +1.2. What are the consequences of increasing the level of advertising by (I) 5%, (ii) 10% and (iii) 15%?

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