Using price elasticity of demand to help determining a pricing policy?

samedi 1 février 2014

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.





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