MODELS OF QUANTITATIVE ANALYSIS OF ELASTICITY

Abstract

This paper describes models of price elasticity using
quantitative indicators. By observing the interdependence between the
elasticity of the demand for some goods and the total consumption
expenditure for this commodity, which can be equated with the total
income of producers who place those goods on the market, the
elasticity can be expressed as a function. Accordingly, the elasticities
of prices and demand have been calculated and analyzed for different
product categories. The obtained results indicate that the higher the
price of these goods, the higher the costs of customers, and thus the
higher the sales revenue. On the other hand, the lower the price - the  lower the expenses of customers, and therefore- the lower the income
of sellers. The elasticity of total costs in relation to the supply of goods
was also analyzed and it has been shown that the coefficients of
elasticity for average and total costs differ from one another by one.