price elasticity

kay67

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I have a file which I have attached and I have been (for a week) trying to see how to calculate (1) price sensitivity and price elasticity when a price is increased by a certain percentage.
What I have historical data (2010 and 2011relating to
1. number fo students in a program per month/quater and year
2. The price per program per month/qauter and year.

I want to increase the school fees by say 4% in 2012. By increasing the price, will it have a positive/negative effect on the number of student that might enrol for 2012 by month/quater/year?
How can I show this using a chart and pv table?

I will really appreciate your assisatnce.
 

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  • pricing - 3.xlsx
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Ken Puls

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Wowsers... it's been a LONG time since I did any elasticity exercises.

I see Microsoft has a template for calculating price elasticity here: http://office.microsoft.com/en-us/templates/price-elasticity-of-demand-calculator-TC001204353.aspx

And Wikipedia has an article here: http://en.wikipedia.org/wiki/Price_elasticity_of_demand

Honestly, I'm going to be much help to you on this one. I can certainly help you implement formulas and such, but I'm going to need you to do the research to figure out what calculations need to get in there.
 

kay67

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Hello,

Apologies for late response. Got your response in my spam box.
Thanks for the link oyu sent and will really appreciate your help on this one.
My excel skil is next to nothing but I need to get this one right.

Please let me know what you need from me to get this started.

Cheers
Kay
 
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