ADVERTISING ELASTICITY OF DEMAND - AED
A measurement of the market's tendency to decrease or increase in advertising saturation. The advertising elasticity is an evaluation of the effectiveness of an advertising campaign to generate new sales. The calculation may be done by dividing the change of percentage in the quantity demanded by the change of percentage in the advertising expense. A positive advertising elasticity connotes that an increase in advertising, leads to advertised good's or services' increase of demand.
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