Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)

Use lines 67–76. Calculate for 2021:

  • cross elasticity of demand for GR’s falafel meals after competitor prices rise by 5% [3]
  • the rise in revenue for GR if promotion spending is increased to $195 000. [3]
(b)[12]

Evaluate the usefulness of the elasticity concept to GR when drawing up its marketing strategy.

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