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Advertising elasticity of demand : ウィキペディア英語版 | Advertising elasticity of demand Advertising elasticity of demand (or simply advertising elasticity, often shortened to AED) is an elasticity measuring the effect of an increase or decrease in advertising on a market.〔Pindyck; Rubinfeld (2001). pp.405-407.〕〔 Although traditionally considered as being positively related, demand for the good that is subject of the advertising campaign can be inversely related to the amount spent if the advertising is negative. == Definition == Good advertising will result in a positive shift in demand for a good. AED is used to measure the effectiveness of this strategy in increasing demand versus its cost.〔 Mathematically, then, AED measures the percentage change in the quantity of a good demanded induced by a given percentage change in spending on advertising in that sector:〔Curran (1999). pp.182-183.〕 : In other words, the percentage by which sales will increase after a 1% increase in advertising expenditure assuming all other factors remain equal (''ceteris paribus'').〔 AED is usually positive.〔 Negative advertising may, however, result in a negative AED.
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