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Total Cost, Total Revenue, and Profit Change as You Sell More Shoes. Four Types of Elasticity. Price (Demand) Elasticity = %∆Q / %∆P Advertising Elasticity = %∆Q / %∆Ad Elasticity of Markup (Return on Sales, Operational Efficiency)= %∆R / %∆Mp

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four types of elasticity
Four Types of Elasticity
  • Price (Demand) Elasticity = %∆Q / %∆P
  • Advertising Elasticity = %∆Q / %∆Ad
  • Elasticity of Markup (Return on Sales, Operational Efficiency)= %∆R / %∆Mp
  • Elasticity of ROME (ROMI, Marketing Productivity)= %∆ROME / %∆Promotion
four types of elasticity1
Four Types of Elasticity
  • Price (Demand) Elasticity = %∆Q / %∆P
  • Advertising Elasticity = %∆Q / %∆Ad
  • Elasticity of Markup (Return on Sales, Operational Efficiency)= %∆R / %∆Mp
  • Elasticity of ROME (ROMI, Marketing Productivity)= %∆ROME / %∆Promotion
total revenue goes up if you sell more shoes q
Total Revenue Goes up if you sell more Shoes, Q

$

Total Revenue

Quantity of Shoes Sold

profit goes up and down as you sell more shoes q
Profit Goes up and down as you sell more Shoes, Q

LOSS

$

Total Revenue

profit

Total Cost

LOSS

Quantity of Shoes Sold

profit goes up and down as you sell more shoes q1
Profit Goes up and down as you sell more Shoes, Q

LOSS

$

Total Revenue

Total Cost

LOSS

Profit

Quantity of Shoes Sold