This project is the gentle introduction of Price Elasticity of Demand Analysis with Regression Analysis to estimate Price Elasticity of Demand(PED).

In marketing, it is important to measure how sensitive consumers are to a change in price of a product. The marketing managers must give answers to below questions such as:

• “If I lower the price of a product, how much more will sell?”
• “If I raise the price of one product, how will that affect sales of the other products?”
• “If the market price of a product goes down, how much will that affect the amount that firms will be willing to supply to the market? We need to measure the percentage change in quantity demanded in response to a one percent change in price. Here, Price elasticity of demand is a measure we will use to show the elasticity of the quantity demanded of a good to a change in its price when nothing but the price changes.

We will conduct data exploration and build a linear regression to estimate PED. Let’s get started!