--%>
Assignment Help - homework help

Different types of determinants of advertisement elasticity

What are the different types of determinants of advertisement elasticity?

E

Expert

Verified

There are different determinants of advertisement elasticity are as given here:

1. Kind of commodity: elasticity will be higher for new product, luxury and growing product.

2. Market share: Well-built the market share of the firm lower will be promotional elasticity.

3. Rival’s reaction: when the rivals react to rise in firm’s advertisement by raising their own advertisement expenditure, this will decrease the advertisement elasticity of the firm.

4. State of economy: when economic conditions are good, the consumers are more probably to respond to the advertisement of the firm.

   Related Questions in Managerial Economics

  • Q : Substantial amounts of

    A currently-laid-off worker is probably to find another job quickly when the worker has substantial amounts of: (i) unemployment compensation and a strong union. (ii) specific human capital gained at the previous job. (iii) screening,

    		•
  • Q : Explain about the signaling Signaling :

    Signaling: (w) attempts to finesse adverse selection. (x) involves behavior by agents to communicate special qualifications which will elicit the offer of a contract from a principal. (y) refers to potential employees obtaining skills, education or ex

    		•
  • Q : Limitation for using illustrations of

    Illustrations of economic capital would NOT contain: (i) an accountant's computer. (ii) 1,000 shares of stock within Google. (iii) a sixteen-pound sledgehammer. (iv) tires upon an eighteen-wheeler truck. (v) paper into the printer of a romance novelis

    		•
  • Q : Prevent cheating among members by

    A cartel tends to be more successful mainly while this can stop: (1) cheating between its members. (2) increases in the demand for its product. (3) joint profit maximization. (4) international trade. (5) an increase in the price of its product. <

    		•
  • Q : Labor Supply Curves to Competitive Firms

    A price taker within the labor market: (w) can set the wage that this will pay for the labor this hires. (x) can set the wage at which this will supply the use of its labor. (y) doesn’t care what wage this pays or receives. (z) can’t influ

    		•
  • Q : Supply of Labor The firm in this

    The firm in this illustrated graph is clearly: (1) price taker in the sale of its output because of the shapes of the VMP and MRP curves. (2) price taker in the purchase of labor when this can hire as several workers as this chooses at roughly of $13 per hour. (3) mon

    		•
  • Q : Explain elements of managerial

    Illustrates the elements of managerial economics as a tool for decision making?

    		•
  • Q : Explain the meaning of price Explain

    Explain the meaning of price.

    		•
  • Q : Define consumer psychology and pricing

    Define the consumer psychology and pricing and affecting elements.

    		•
  • Q : Illustrates the Scope of Managerial

    Illustrates the Scope of Managerial /Business Economics?

    		•