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Overview

Introduction
Demand
Income
Advertising
Cross
Supply
TR
TR (2)

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Sheet 1: Introduction

Elasticities of demand, income, cross, advertising and supply
Spreadsheet developed by Duncan Williamson
	Different measures of elasticity

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Sheet 2: Demand

Price elasticity of demand
Input your quantities demanded and the old and new prices below (cells C9 to C12)
to see the price elasticity of demand
Inputs	New quantity demanded following the price change
	Old quantity demanded before the price change
	New price
	Old price
Results	Percentage change in quantity demanded
	Percentage change in price
	PRICE ELASTICITY OF DEMAND

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Sheet 3: Income

Income elasticity of demand
Input your quantities demanded and the old and new incomes below (cells C9 to C12)
to see the income elasticity of demand
Inputs	New quantity demanded following the income change
	Old quantity demanded before the income change
	New real incomes
	Old real incomes
Results	Percentage change in demand
	Percentage change in real incomes
	INCOME ELASTICITY OF DEMAND

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Sheet 4: Advertising

Advertising elasticity of demand
Input your quantities demanded and the old and new advertising expenditure below
(cells C9 to C12) to see the advertising elasticity of demand
Inputs	New quantity demanded following the advertising expenditure change
	Old quantity demanded before the advertising expenditure change
	New advertising expenditure
	Old advertising expenditure
Results	Percentage change in demand
	Percentage change in advertising expenditure
	ADVERTISING ELASTICITY OF DEMAND
		is this elastic or inelastic?

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Sheet 5: Cross

Cross elasticity of demand
Input your quantities demanded and the old and new prices below (cells C9 to C12)
to see the cross elasticity of demand
Inputs	New quantity demanded following the price change
	Old quantity demanded before the price change
	New price
	Old price
Results	Percentage change in quantity demanded
	Percentage change in price
	CROSS ELASTICITY OF DEMAND

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Sheet 6: Supply

Elasticity of supply
Input your quantities demanded and the old and new prices below (cells C9 to C12)
to see the price elasticity of supply
Inputs	New quantity supplied following the price change
	Old quantity supplied before the price change
	New price
	Old price
Results	Percentage change in quantity supplied
	Percentage change in price
	ELASTICITY OF SUPPLY
		is supply elastic or inelastic?

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Sheet 7: TR

Total revenue as it reacts with demand
Firstly, a worked example and then an example for you to do.
Worked example
Quantity demanded	Price (£)	Total Revenue (£)	Change in revenue (£)	Change in Quantity (%)	Change in Price (%)	Price elasticity of demand
1 000	1	1 000	-	-	-
900	2	1 800	£800,00	-10%	100%	-0,100
800	3	2 400	£600,00	-11%	50%	-0,222
700	4	2 800	£400,00	-13%	33%	-0,375
600	5	3 000	£200,00	-14%	25%	-0,571
500	6	3 000	£0,00	-17%	20%	-0,833
400	7	2 800	(£200,00)	-20%	17%	-1,200
300	8	2 400	(£400,00)	-25%	14%	-1,750
200	9	1 800	(£600,00)	-33%	13%	-2,667

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Sheet 8: TR (2)

Total revenue as it reacts with demand
Fill in the Price and Quantity demanded columns and see what you get: start at cell A6!
You can extend the data ranges as far as you like and the graphs will cope!
Quantity demanded	Price (£)	Total Revenue (£)	Change in revenue (£)	Change in Quantity (%)	Change in Price (%)	Price elasticity of demand
100	1	100	-	-	-
90	1,5	135	£35,00	-10%	50%	-0,200
80	2	160	£25,00	-11%	33%	-0,333
70	2,5	175	£15,00	-13%	25%	-0,500
60	3	180	£5,00	-14%	20%	-0,714
50	3,5	175	(£5,00)	-17%	17%	-1,000
40	4	160	(£15,00)	-20%	14%	-1,400
30	4,5	135	(£25,00)	-25%	13%	-2,000
20	5	100	(£35,00)	-33%	11%	-3,000