How to calculate price elasticity

[Dokat]

Hi,

I have 52-week sales trend data at various price points. How can I calculate the price elasticity of demand based on the trend data? Attached is the sample data set. Does anyone has experience with PED calculation and have a solution for it. Thanks

 

[Peter Bartholomew]

= -SLOPE(LN(Demand), LN(Avg_Price))

 

[Dokat]

Thank you for sharing the formula and methodology. Is there a way to confirm the significance of the model whether if it is predictive? Also how would the formula change if there is more than one variable on the X axis. For Ex: In addition to price, if we add seasonality, and merchandising . Seasonality would be either 1 or 0 merchandising would be % value.

= -SLOPE(LN(Demand), LN(Avg_Price), LN(Avg_Seasonality), LN(Avg_Merchandising))

Thanks again

 

[cacc1991]

Do any of you know how to calculte the cross-elasticty with a similar approach to this?

 

[vletm]

cacc1991​

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