Would you expect an increase or decrease in total revenue

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Reference no: EM13210119

In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is 1.5 and the advertising elasticity of demand is +0.6, would you expect an increase or decrease in total revenues?

Reference no: EM13210119

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