A Price Increase from $25 to $32 Results in an Increase

question 205

Multiple Choice

A price increase from $25 to $32 results in an increase in quantity supplied from 830 units to 940 units. The price elasticity of supply in this price range is

• A)1.61.
• B)0.5.
• C)1.98.
• D)0.62.

---

Definitions:

Awareness

The knowledge or perception of a situation or fact, often used in marketing to denote the extent to which consumers are familiar with the qualities or image of a particular brand or product.

Posttesting Advertising Copy

The evaluation of advertising effectiveness after a campaign has been aired to measure its impact on the intended audience.

Limited-service Advertising Agencies

Agencies that offer selected advertising services without the full suite of marketing and strategy planning.

Full-service Advertising Agencies

Agencies that provide a complete range of advertising-related services, including research, design, branding, digital marketing, and public relations, to clients.