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You Are the Manager of a Popular Hat Company

Question 142

Multiple Choice

You are the manager of a popular hat company.You know that the advertising elasticity of demand for your product is 0.25.How much will you have to increase advertising in order to increase demand by 5 percent?


A) 0.05 percent
B) 20 percent
C) 25 percent
D) 1.25 percent

Correct Answer:

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