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Q. Estimate the demand curve also price elasticity for a business in any organization. Collect at least 5 observations on prices also associated quantities of output or sales for the industry. You can get price also quantity information from 2 of the three components (total revenue, units sold, and prices).
1. Generally describing the business also include a plot of the Price also Quantity data that you obtained. Plot it as demand information with price on the vertical (Y) axis also quantity on the horizontal (X) axis.
2. Run a regression in excel with Sales or output quantity as the dependent or Y variable also Price as the independent or X variable, also get regression results in the form of Q = a + b P, where a is the quantity intercept also b is the slope of the linear demand curve. Plot the line regression line through your previously plotted data observations.
3. Price elasticity at the most recent price using the formula E = b (Price/Quantity). Include your elasticity estimate in the paper as well.
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