By Neil Hopper Borden
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1930........ 1931........ 1932........ 1933........ 4* 1934........ 1935........ 1936........ 1937........ 1938........ 9* 1939........ 1940........ 1941........ 1942........ 1943........ 9 5-1 5-9 1944........ 1945........ 1946........ 1947........ 2 • Dividend payments made from reserves accumulated in previous years, t Under $50 million. ): Government Statistics Bureau, Vol. II, No. 8 (August, 1918). S. FAMILIES AND SINGLE INDIVIDUALS BY SIZE OF INCOME FOR SELECTED YEARS o o o oa. rT 1935-36 Annual Income Less than $500...................
The Concept of Expansibility of Demand A study of demand shows that different products vary widely in the susceptibility of their primary demand to increase as a result of adver tising and aggressive selling. For example, the demand for oranges has increased under aggressive selling; the demand for men’s shoes has not so responded. ’*10 11 Expansibility of demand should be distinguished from elasticity of demand. 11 The concept of expansibility of 10 This term is believed to have been used first by Professor M.
A management must ask: To what extent does advertis ing promise to affect sales income (a) through effect on units sold; (b) through effect on price obtainable? While a management often can, through use of advertising, increase the desire of consumers for its products, and thereby may find it possible Digitized by Google Original from UNIVERSITY OF MICHIGAN 14 * ADVERTISING: TEXT AND CASES to increase the prices which it receives per unit, it also often can ma terially affect the quantities of its products sold, and accordingly its sales income, by the prices it sets upon its products.