A 10 Percent Decrease in Advertising Results in a 5

question 97

Multiple Choice

A 10 percent decrease in advertising results in a 5 percent sales decrease. The advertising elasticity of demand is:

• A) -2.0.
• B) -0.5.
• C) 0.5.
• D) 2.
• E) none of the above

---

Definitions:

Dealer Market

A financial market mechanism in which transactions are made through dealers who buy and sell securities for their own accounts.

OTC Market

Over-The-Counter Market, where securities are traded directly between parties without a central exchange, often used for stocks not listed on formal exchanges.

Double Taxation

A taxation principle referring to income taxes paid twice on the same source of earned income, commonly seen in corporate dividends.

Sole Proprietorships

A business owned and operated by a single individual, where the owner and the business are legally the same entity.