lydiapoetz5330

06.06.2020 • 

Business

We are interested in learning about the demand response to advertising for our product. We collect data and model our demand with the following linear equation: Q=bo + b1 Addollars + b2 Compads + b3 Adcopy Addollars is our advertising expenditures per 100 potential customers over 6 months, Compads is our rival's advertising levels in the same region over the same time period. We have two versions of our advertisement captured by: Adcopy = 1 for emotional, Adcopy = 0 for rational verbiage. We estimate the following coefficients: Estimate bo = 32.59 bi = 1.48 b2 = -0.57 b3 = 2.13 T-Stat (12.9) (4.4) (3.5) (1.1) We are also able to estimate our competitor's advertising levels: Compads = co + c • Addollars + C2 · Adcopy with the following results: Estimate Co = 9.713 c = 0.851 C2 = 9.083 T-Stat (3.6) (2.0) (4.7) (a) 6 points Assuming we use the emotional advertising copy, write out our general demand equation using our estimates from the table(s): (b) 6 points Suppose we set Addollars = 8, use your equation above to estimate our advertising elasticity. (c) 6 points Assuming our price elasticity of demand, n = -2, then our advertising level should be approximately what percentage of our sales?

Ответ:

shygrl05

10.07.2020

Business

---

1. Decrease

Explanation:

Gross profit percentage is the amount of money earned from the sales of goods or rendering of services expressed in percentages. It is the amount earned expressed in percentage after removing the total cost of production from revenue earned.

Formula for calculating

= (Gross profit/Total sales) × 100.

Thus, when there's a decrease in the price of goods with the cost of producing that goods remaining constant, the gross profit percentage decreases. Also, when there's an increase in price with cost remaining constant, the gross profit also increases.

---

0,0(0 оценок)