Register to reply 
Using price elasticity of demand to help determining a pricing policy?by math8
Tags: demand, determining, economics, elasticity, historic data, price, price elasticity, pricing 
Share this thread: 
#1
Feb214, 01:01 AM

P: 161

How can price elasticity of demand for some data help in determining a decision making process in a future pricing policy?
I have some data that I want to analyze. I am given prices and demand for different products over a period of time. And I would like to use the price elasticity data to get some answers (or maybe other methods?). I would appreciate any ideas on how to go about approaching this problem. I was thinking about performing a regression analysis, but, according to the data that I have, I don't think demand only depends on the price, given the fact that the prices given are mostly stable, and the demand fluctuates a lot. 


#2
Feb414, 09:18 AM

Mentor
P: 11,917




#3
Feb414, 05:32 PM

Emeritus
Sci Advisor
HW Helper
Thanks
PF Gold
P: 6,547

A regression analysis can help you analyze the factors going into the pricedemand relationship.
Have you done the first step, which is plot your data? This can tell if you have a relatively linear relationship between price and demand or if the relationship is somewhat nonlinear. That helps to determine the type of regression analysis to perform. 


Register to reply 
Related Discussions  
Price elasticity of demand  Calculus & Beyond Homework  3  
Price Elasticity of Demand Help  Calculus & Beyond Homework  2  
Calculation on Price Elasticity of Demand problem ... Need Advices ....  Social Sciences  4  
Price Elasticity of Demand and Supply in Sharemarket  Social Sciences  3  
Price demand function  Introductory Physics Homework  1 