The questions involve your interpreting the model output within your answers.

In this case, the model output consists of;

• AED
• Original and New Total Revenue
• Original and new Total Cost (costs inclusive of advertising expenditure)
• Original and New Profit

Your discussion should focus on using the simulation output to support your theoretical expectations. For instance, you could argue that theoretically you would expect the increase in the level of advertising to cause an increase in the quantity demanded, causing an increase in total revenue and profit. You can test this expectation using the simulation.

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