The advertising elasticity of demand for ballet shoes is 0.15. How much will Happy Feet Shoes...
The advertising elasticity of demand for ballet shoes is 0.15. How much will Happy Feet Shoes have to increase advertising to increase demand for ballet shoes by 10 percent?
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66.7 percent
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4.3 percent
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0.02 percent
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None of the options.
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38.6 percent
Homework Answers
Elasticity = 0.15
Demand increases by 10%
Since Elasticity = percentage change in demand/percentage change in price
so, 0.15 = 10/Change in price
Change in price = 10/0.15 = 66.7%
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The advertising elasticity of demand for ballet shoes is 0.15.
How much will Happy Feet Shoes...
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