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Question 4 (5 points) You are the manager of the marketing department of your company which focuses on the sales of a certain electric vehicle.

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Question 4 (5 points) You are the manager of the marketing department of your company which focuses on the sales of a certain electric vehicle. Last year, your company spent $12 million on advertisements and had overall sales revenue of $45 million. A recent study indicates that, for each 6 percent increase in TV advertising expenditures, a car dealer can expect to sell 2 percent more cars- but that it would take a 1 percent decrease in price to generate the same 2 percent increase in units sold. Based on this information, should you increase or decrease your firm's level of advertising? Explain why, show your calculations. (5 points)

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