SEPTEMBER 2025Foundation
11. If a company increases its advertisement expenditure by 20% and the quantity demanded increases by 40%, what is the advertisement elasticity of demand?
A
(A) Ea = 0
B
(B) Ea = 1
C
(C) Ea =0.5
D
(D) Ea =2
11. If a company increases its advertisement expenditure by 20% and the quantity demanded increases by 40%, what is the advertisement elasticity of demand?
(A) Ea = 0
(B) Ea = 1
(C) Ea =0.5
(D) Ea =2