This uses price elasticity to quantify the expected volume change due to the proposed price change. The price change impact is calculated using the following formula: (proposed/current price) ^elasticity * current units * proposed price.
Price change impact
This uses price elasticity to quantify the expected volume change due to the proposed price change. The price change impact is calculated using the following formula: (proposed/current price) ^elasticity * current units * proposed price.
Related Terms
Elasticity
Measures the volumetric impact from a price change holding all other variables constant.