Elasticity – the model behind the calculator…

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What’s happening in the profit calculator on the previous page?

    The unit sales at different price points are modeled in QuickPrice. This model can then be used to calculate total profit over a grid of costs and retail prices. The variation of unit sales with changes in price is the demand elasticity of the product. If we know the purchase cost and predict units sold from retail price we can calculate total profit. To see a full implementation of the QuickPrice model click the skuPrice banner below. You can view a short video about Demand Elasticity here. The QuickPrice model is different (and better) than the one described in the video.