Price Elasticity: Estimating Demand Curves, Log-Log Regression & Optimal Price

About this course

A price elasticity course that estimates the demand curves of one fictional coffee roaster, Juniper & Oak Coffee Roasters, from its own sales data in a spreadsheet, for pricing analysts, marketing and revenue managers, economics students and small business owners. You measure the elasticity of five products from their last price change with the simple and the arc midpoint formula, fit a constant-elasticity demand curve with LN and SLOPE and forecast units at a planned price, show how promotions and seasonality bias a price-only regression and fix it with LINEST and dummy variables, estimate the cross-price elasticity against a competitor, find the revenue- and profit-maximising price with the markup rule, chart the demand and profit curves, compare online and store segments, and size and read an A/B price test. Fictional company, illustrative data. The first lab is free.