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Suppose we know that for every 10% increase in price, we lose 5% of our sales (in units), and if we increase our advertisement budget
Suppose we know that for every 10% increase in price, we lose 5% of our sales (in units), and if we increase our advertisement budget by 10%, we would increase sales (in units) by 2%. Our total revenue is $5,000. Economists suggest that we should spend _______ on advertising.
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