inventorize (version 1.1.1)

elasticity: elasticity

Description

calculating elasticity of price change.

Usage

elasticity(salesP1, salesP2, priceP1, priceP2)

Arguments

salesP1,

integer, unit sales in period 1.

salesP2

integer unit sales in period 2.

priceP1

numeric, average price of sku in period 1.

priceP2

average price of sku in period 2.

Value

the elasticity ratio in unit sales, the -ve number represents the increase in sales for each decrease of unit currency.

Details

This function is helpful to determine the elasticity of a product with effect to price change, the figure could be negative as the change is price is negative. it translates as for each unit percentage decrease in price , this much is ecpected precentage of increase of sales. condition must be that Price in period one was more than proce in period 2 and sales in period two was more than sales in period 1.

Examples

# NOT RUN {
elasticity(salesP1=50,salesP2=100,priceP1=6,priceP2=4)
# }