You Own a Small Bookstore $\frac{1}{2}$ Of 1 Percent

question 38

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) \(\frac{1}{2}\) of 1 percent.
• B) 1 percent.
• C) 3 percent.
• D) 34 percent.

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Definitions:

Analog Output Interface

A device or circuitry that converts digital signals from a computer or controller into continuous analog signals for controlling external hardware.

Numerical Data

Information represented in numbers, used extensively in statistical analysis and scientific research.

Processor

The central unit in a computer or microcontroller that interprets and executes instructions.

Proportional

Describing a control or relationship where a change in one quantity results in a proportional change in another quantity.