| elasticity {inventorize} | R Documentation |
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. |
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.
Value
the elasticity ratio in unit sales, the -ve number represents the increase in sales for each decrease of unit currency.
Note
this is the second version of the inventorize package, all the fucntions are without any academic contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured during stock analysis.
Author(s)
"haytham omar email: "<haytham@rescaleanalytics.com>"
Examples
elasticity(salesP1=50,salesP2=100,priceP1=6,priceP2=4)