Question #2001097: Elasticity Theory

Question: You are the owner of a high-end boutique in Toronto. You have estimated that the marginal revenue of spending an additional $40,000 on advertising in the local radio station would be $60,000. However as a result of your research you are a little apprehensive. You have estimated that the price elasticity is – 1.8. Should you go ahead with the promotion?

Solution: The solution consists of 90 words (1 page)
Deliverables: Word Document

Like it? Share with your friends!


log in

reset password

Back to
log in
Do NOT follow this link or you will be banned from the site!