You Own a Small Bookstore $1 /2$ Of 1 Percent

Multiple Choice

You own a small bookstore. You have hired a marketing firm to calculate your own price elasticity of demand and your advertising elasticity of demand. The firm has provided you with the relevant numbers regardless of minor adjustments in price or advertising budget. Your own price elasticity of demand is around -1.7, and your advertising elasticity of demand is around 0.05. What should your approximate advertising-to-sales ratio be?

A) $1 /2$ of 1 percent.
B) 1 percent.
C) 3 percent.
D) 34 percent.