|Date: ||Tue, 23 Jan 2007 05:39:20 -0800|
|Reply-To: ||DBtoo <delmablinson@YAHOO.COM>|
|Sender: ||"SPSSX(r) Discussion" <SPSSX-L@LISTSERV.UGA.EDU>|
|From: ||DBtoo <delmablinson@YAHOO.COM>|
|Subject: ||Computing optimum price|
|Content-Type: ||text/plain; charset=us-ascii|
I am a statistical novice but need an equation or tool to relate volume to
price. If one assumes (based on daily data points) an increase in price
will both reduce volumn but also increase margin (profit) then the question
becomes how high the price can go before the decrease in volume causes less
profit even a higher margin. We will also factor in cost but that is not
essential in this part of the analysis. For these purposes we can assume
cost is constant. The same with the variable of competitor's prices. We
will assume that will be absorbed in the impact on volume.
Can anyone point me to a resource or does anyone have a formula (equation)
already worked out?
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