Price Elasticity of Demand/Profit
$begingroup$
I am trying to solve a problem which involves deciding on a price strategy for a product between (reducing price, maintaining price, increasing price).
I am trying to use price elasticity to tackle this but the problem is that I only have values for $P_0$ and $Q_0$, so I can't punch it into the price demand elasticity equation.
Can I just assume that: $ Q = A P ^ Y$ and solve the log-log equation with the initial values.
logarithms
edited Dec 17 '18 at 22:24
Rócherz
2,9863821
asked Dec 17 '18 at 22:04
Emmanuel UwechueEmmanuel Uwechue
163
$endgroup$
add a comment |
$begingroup$
I am trying to solve a problem which involves deciding on a price strategy for a product between (reducing price, maintaining price, increasing price).
I am trying to use price elasticity to tackle this but the problem is that I only have values for $P_0$ and $Q_0$, so I can't punch it into the price demand elasticity equation.
Can I just assume that: $ Q = A P ^ Y$ and solve the log-log equation with the initial values.
logarithms
edited Dec 17 '18 at 22:24
Rócherz
2,9863821
asked Dec 17 '18 at 22:04
Emmanuel UwechueEmmanuel Uwechue
163
$endgroup$
add a comment |
$begingroup$
I am trying to solve a problem which involves deciding on a price strategy for a product between (reducing price, maintaining price, increasing price).
I am trying to use price elasticity to tackle this but the problem is that I only have values for $P_0$ and $Q_0$, so I can't punch it into the price demand elasticity equation.
Can I just assume that: $ Q = A P ^ Y$ and solve the log-log equation with the initial values.
logarithms
edited Dec 17 '18 at 22:24
Rócherz
2,9863821
asked Dec 17 '18 at 22:04
Emmanuel UwechueEmmanuel Uwechue
163
$endgroup$
I am trying to solve a problem which involves deciding on a price strategy for a product between (reducing price, maintaining price, increasing price).
I am trying to use price elasticity to tackle this but the problem is that I only have values for $P_0$ and $Q_0$, so I can't punch it into the price demand elasticity equation.
Can I just assume that: $ Q = A P ^ Y$ and solve the log-log equation with the initial values.
logarithms
logarithms
edited Dec 17 '18 at 22:24
Rócherz
2,9863821
asked Dec 17 '18 at 22:04
Emmanuel UwechueEmmanuel Uwechue
163
edited Dec 17 '18 at 22:24
Rócherz
2,9863821
asked Dec 17 '18 at 22:04
Emmanuel UwechueEmmanuel Uwechue
163
edited Dec 17 '18 at 22:24
Rócherz
2,9863821
edited Dec 17 '18 at 22:24
Rócherz
2,9863821
edited Dec 17 '18 at 22:24
Rócherz
2,9863821
2,9863821
asked Dec 17 '18 at 22:04
Emmanuel UwechueEmmanuel Uwechue
163
asked Dec 17 '18 at 22:04
Emmanuel UwechueEmmanuel Uwechue
163
asked Dec 17 '18 at 22:04
Emmanuel UwechueEmmanuel Uwechue
163
163
add a comment |
add a comment |
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