Calculating AED Worksheet - Advertising Elasticity Simulation [Virtual Learning Arcade]

An interactive worksheet on the calculation of the advertising elasticity of demand as part of the advertising elasticity of demand simulation in the Virtual Learning Arcade.

AED: Calculating the advertising elasticity of demand

The aim of this question is to calculate the advertising elasticity of demand.

What impact will an increase in the level of advertising have on the market demand curve? (select one answer)

(a) unmarked question shift to the right
(b) unmarked question shift to the left
(c) unmarked question have no impact



Given the following settings, what is the AED, and how would you interpret the value?; Try This

  • Original level of advertising = 100
  • Original quantity = 100
  • Final level of advertising = 140
  • Final quantity = 130
  • Original price = 20
  • Costs per unit = 7

(Type your answer to the previous question in the box below, then click on explain)


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