Price Elasticity of Demand
Hello.
How does one go about estimating the price elasticity of demand for a product/service in the real world? For anyone who is an economics researcher/consultant/smart person, is it practically difficult?
Basically what I want to do is find the demand curve for my product at different points of each day (the demand changes radically for this product during each day, and is very different on weekend vs weekday)
Anyway, generally speaking, how does one go about observing it. E.g. if you change the price by x% and try to observe the change in revenue, how do you control for other factors that may affected revenue, including competitor response?
pick up some books on managerial economics
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