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MINI-CASE Vincent & Rankine Is a Company That Spends Billions of of Dollars

Question 41

Multiple Choice

MINI-CASE
Vincent & Rankine is a company that spends billions of dollars annually on marketing communications,primarily because they have many brand offerings in several product categories.Some of these expenditures are used on marketing communications targeted at end-user consumers of their brand,and other expenditures are used on marketing communications targeted at intermediaries in the channel of distribution.
-Mini-Case Question.If Vincent & Rankine realizes a sales increase of 1.2% and an increase of 4.8% in ad expenses in that period of time,what is the advertising elasticity for the brand?


A) 0.025
B) 0.25
C) 2.5
D) 25
E) 250

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