For the first factor--advertising--the marginal efficiency [B.sub.1] and the coefficient of elasticity
[E.sub.1] have considerable positive values.
The coefficient of elasticity
of sales tax for imports is 1.2Y However the elasticity of customs duties on imports is exceptionally low at -1.25 in the presence of sales tax, which picks up the loss in revenue due to the reduction in tariffs.
The capacity to resist deflection increases as the coefficient of elasticity
The thing to remember, therefore, is that in order to derive an unequivocal coefficient of elasticity
we must first derive the equation of the demand curve, or the law of demand.
where [delta] is the coefficient of elasticity
of adjustment and its value is expected to lie between zero and unity.