10.2 Estimating Advertising Elasticity

Analysis Scale
Thousands
Sales Revenue Performance Advertising Expense Performance Advertising Elasticity
Before Advertising
$200
$
Before Advertising
$10
$
 
After Advertising
$208
$
After Advertising
$15
$
 
% Change in Sales
10.0
% Change in Advertising
50.0
0.20
Starting Data Scale
Thousands
Sales Revenue Performance Advertising Expense Performance Advertising Elasticity
Before Advertising
$200
$
Before Advertising
$10
$
 
After Advertising
$208
$
After Advertising
$15
$
 
% Change in Sales
10.0
% Change in Advertising
50.0
0.20
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