If change in quantity demanded is 60% and change in advertisement expenditure is 20% then what will be the advertisement elasticity?

CA Foundation · Business Economics · PYQS · September 2024
If change in quantity demanded is 60% and change in advertisement expenditure is 20% then what will be the advertisement elasticity?
(A) A. 0.33
(B) B. 3
(C) C. 6
(D) D. 20

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. 3

Topics: Theory of Demand and Supply

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