Contributor
Posts: 31

# Price change and volume change (Price Elasticity Concept)

[ Edited ]

Hi,

I have table like as shown below:

 Prod_ID Date SP Vol 101 01Jan2015 18 50 101 04Jan2015 19 55 101 07Jan2015 20 40 101 12Jan2015 19 53 101 15Jan2015 20 37 101 19Jan2015 18 52 101 24Jan2015 19 54 101 25Jan2015 21 32 101 29Jan2015 18 51 101 31Jan2015 20 42 102 01Jan2015 9 40 102 04Jan2015 10 35 102 07Jan2015 8 45 102 12Jan2015 7 44 102 15Jan2015 9 42 102 19Jan2015 11 39 102 24Jan2015 8 48 102 25Jan2015 11 41 102 29Jan2015 9 45 102 31Jan2015 10 36

Now i need to calculate price change and volume change:

The formula used to calculate the percentage change in SP is:
Price Change= [SP(NEW) - SP(OLD)] / SP(OLD)

The formula used to calculate the percentage change in Vol is:
Volume Change=[Vol(NEW) - Vol(OLD)] / Vol(OLD)

Elasticity= Price Change/Volume Change

So my result should be:

 Prod_ID Date SP Vol Price Change Volume Change Elasticity 101 01Jan2015 18 50 0 0 0 101 04Jan2015 19 55 0.055555556 0.1 1.8 101 07Jan2015 20 40 0.052631579 -0.272727273 -5.181818182 101 12Jan2015 19 53 -0.05 0.325 -6.5 101 15Jan2015 20 37 0.052631579 -0.301886792 -5.735849057 101 19Jan2015 18 52 -0.1 0.405405405 -4.054054054 101 24Jan2015 19 54 0.055555556 0.038461538 0.692307692 101 25Jan2015 21 32 0.105263158 -0.407407407 -3.87037037 101 29Jan2015 18 51 -0.142857143 0.59375 -4.15625 101 31Jan2015 20 42 0.111111111 -0.176470588 -1.588235294 102 01Jan2015 9 40 0 0 0 102 04Jan2015 10 35 0.111111111 -0.125 -1.125 102 07Jan2015 8 45 -0.2 0.285714286 -1.428571429 102 12Jan2015 7 44 -0.125 -0.022222222 0.177777778 102 15Jan2015 9 42 0.285714286 -0.045454545 -0.159090909 102 19Jan2015 11 39 0.222222222 -0.071428571 -0.321428571 102 24Jan2015 8 48 -0.272727273 0.230769231 -0.846153846 102 25Jan2015 11 41 0.375 -0.145833333 -0.388888889 102 29Jan2015 9 45 -0.181818182 0.097560976 -0.536585366 102 31Jan2015 10 36 0.111111111 -0.2 -1.8

I also have doubt whether this is the approach to do price elasticity? Please share your thoughts on this

Thanks

Ganesh K

Super User
Posts: 23,661

## Re: Price change and volume change (Price Elasticity Concept)

What is your question? Do you need help implementing the formula's in SAS? Or with the methodology of your problem, which would be considered out of scope for this forum.

Super User
Posts: 10,761

## Re: Price change and volume change (Price Elasticity Concept)

```I am familiar with these concepts .

data have;
infile cards truncover expandtabs;
input Prod_ID	Date : \$20.	SP	Vol;
cards;
101	01Jan2015	18	50
101	04Jan2015	19	55
101	07Jan2015	20	40
101	12Jan2015	19	53
101	15Jan2015	20	37
101	19Jan2015	18	52
101	24Jan2015	19	54
101	25Jan2015	21	32
101	29Jan2015	18	51
101	31Jan2015	20	42
102	01Jan2015	9	40
102	04Jan2015	10	35
102	07Jan2015	8	45
102	12Jan2015	7	44
102	15Jan2015	9	42
102	19Jan2015	11	39
102	24Jan2015	8	48
102	25Jan2015	11	41
102	29Jan2015	9	45
102	31Jan2015	10	36
;
run;
data want;
set have;
by Prod_ID;
PriceChange=(SP-lag(SP))/lag(SP);
VolumeChange=(Vol-lag(Vol))/lag(Vol);
Elasticity= PriceChange/VolumeChange;
if first.Prod_ID then do;
PriceChange=0;
VolumeChange=0;
Elasticity=0;
end;
run;

```
Contributor
Posts: 31

## Re: Price change and volume change (Price Elasticity Concept)

Hi Ksharp,

Thanks for code. I need to know is this the method used to arrive Price elasticity? Since i am new to work on this concept. I went through this link : http://support.sas.com/rnd/app/examples/ets/simpelast/sas.htm

Do i need to consider some of other factor?

Overall i want to know how to arrive Price elasticity?

Thanks,

Ganesh K

Super User
Posts: 10,761

## Re: Price change and volume change (Price Elasticity Concept)

Sorry. I can not understand what you mean. Maybe you should start another new session to discuss this topic.
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