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ID number:536991
 
Evaluation:
Published: 28.11.2002.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

The calculation of the AED will produce a value. This value will indicate some of the characteristics of the good. For instance;·A value over 1 implies a relatively elastic demand. In other words, an increase in the level of advertising will cause a proportionately greater increase in the demand for the good. ·A value less than 1 implies a relatively inelastic demand. In other words, an increase in the level of advertising will cause a proportionately smaller increase in the demand for the good. The sign indicates how advertising influences the demand. …

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