final demand elasticity ppt
TRANSCRIPT
Demand & Elasticity
-Taj Vivanta customer survey
GROUP 4
NAME ROLL NO
ALDEN TEREZA 55BERTILA D’SOUZA 12EESHA PRABHU 42
NIKITA FERNANADES 17TRUPTI GHANEKAR 22VAIBHAV SAWANT 49
Purpose
•To calculate demand & hence the elasticity for a change in:
1. Income
2. Price
3. Competitors price
IncomePerson#/Question# 1 2 3 4
1 3-4 3-4 Same Continue
2 4-6 4-6 Same Continue3 5-6 5-6 Same Continue4 5-6 5-6 Same Continue
5 3-4 3-4 Same Continue6 5-6 5-6 Same Continue7 12-13 12-13 Same Continue8 9-10 9-10 Same Continue9 6-7 6-7 Same Continue
10 6-7 6-7 Same Continue
Income elasticity of demand
EID= % change in demand % change in income
EID = cannot be determined as there is neither change in demand nor in income
Q# Question Options1 Income previous year(range in lacs) 2 Income present year(range in lacs) 3 % increase in income this year
4
with higher income this year, will you continue to come to Taj Vivanta(continue) or switch to a different hotel with better facilities and may be higher price(switch)?
a Continue b Switch
PricePerson#/Question# 5
1 20%
2 20%
3 20%
4 20%
5 20%
6 10%
7 20%
8 20%
9 20%
10 20%
Q# Question Options5 At what % increase in price will you stop coming to Taj Vivanta? a 10% b 20% c 30% d 40%
Price elasticity of demand
EPD= % change in demand % change in price
At 10%, EPD =1
At 20%, EPD =5
Competitors price
Q# Question Options6 At what % decrease in price will you switch to a competitors hotel?
a 10% b 20% c 30% d 40%
Person#/Question# 6
1 30%
2 30%
3 30%
4 30%
5 30%
6 20%
7 30%
8 30%
9 30%
10 30%
Cross elasticity of demand
ECD= % change in demand % change in competitors price
At 10%, ECD =0
At 20%, ECD =0.5
At 30%, ECD =3.33
Thank you