Estimate the demand curve and price elasticity for a business in any industry. Collect at least 5 observations on prices and associated quantities of output or sales for the firm. You can get price and quantity information from two of the three components (total revenue, units sold, prices).
1. Generally describing the business and include a plot of the Price and Quantity data that you obtained. Plot it as demand information with price on the vertical (Y) axis and quantity on the horizontal (X) axis.
2. Run a regression in excel with Sales or output quantity as the dependent or Y variable and Price as the independent or X variable, and get regression results in the form of Q = a + b P, where a is the quantity intercept and b is the slope of the linear demand curve. Plot the line regression line through your previously plotted data observations.
3. price elasticity at the most recent price using the formula E = b (Price/Quantity). Include your elasticity estimate in the paper as well.