From the course: Data Analytics for Pricing Analysts in Excel
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Estimating linear and power demand curves - Microsoft Excel Tutorial
From the course: Data Analytics for Pricing Analysts in Excel
Estimating linear and power demand curves
- [Instructor] I'm in the 02_02_Begin Excel file. Now, one of the most important issues that any business faces is looking at their demand for particular products. In order to determine what a product's demand curve looks like, we really need to gather some data. What I've done is gather hypothetical data on two different products. On the left, we see product number one, and it has prices ranging from $75 to $76.50, and unit sales fall from 5,000 units to 4,760 units as price rises. Our total sales in dollars then are simply equal to price times demand. For product number two, we have a wider spectrum of prices. They range from $50 to $70, and demand falls much more substantially, from 3,240 units all the way down to 1,650 units. What I want to do now is go through and fit a demand curve to this data. To do that, I'm going to highlight the data that I'm interested in, and we'll start with product one, and now I…
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