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Suppose you have the following information.
Current product price equal $5.00
Current sales level equal 45,000 units
The advertising department expects the next $20,000 in ad spend should increase sales by 5,000 units to 50,000 while maintaining the current price of $5.00.
The finance department predicts dropping the price by $1.00 will increase sales by 15,000 to 60,000 units next year.
Which action should you take next year, increase advertising or drop price. Be sure to use economic theory we discuss in this class? (Show work please)
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consider the cobb douglass utility function ux y x16y56 of a typical student. x denotes time spent studying and y
The same as real money demand and real money supply.
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The Haas Corporation's executive vice president circulates a memo to the firm's top management in which he argues for a reduction in the price of the firm's product. He says such a price cut will increase the firm's sales and profits.
How the marketing and economic approaches deal
the price of gasoline in europe is much higher than in the united states and the reason is that the gas tax is much
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