Here is the synopsis of our sample research paper on Pricing Elasticity. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4 page paper discusses pricing comparisons between United and American. Bibliography lists 3 sources.
Page Count:
4 pages (~225 words per page)
File: D0_HVElastc.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
per capita income, and load factor on the Chicago-Columbus, Ohio route flown by American Airlines and United Air Lines. It determines the price elasticity as determined by various methods. Elasticity
"Own-price elasticity" is defined as the "percentage by which the quantity demanded will change if the price of the item rises by 1%"; or as the "Percentage (proportionate change in
the quantity demanded divided by the percentage (proportionate) change in price" (Png and Cheng, 2001). The "arc" method of finding this figure "calculates the percentage change in the quantity demanded
(change in quantity demanded/average quantity demanded) divided by the percentage change in price (change in price/average price) (Png and Cheng, 2001). American dropped their price from $110 to $109 between
months 3 and 4, and their per capita income also dropped from $2,100 to $1,900; however, their load factor remained the same. The load factor is "the ratio of the
average load to peak load during a specified time interval" (Load factor). If they dropped the price but retained the same load factor, they must have carried more passengers then
before: enough to make up for the lower fare. Income elasticity refers to the "percentage by which the quantity demanded will change if the buyers income rises by 1%" (Png
and Cheng, 2001). We see a rise in Americans income, from $1,900 to $2,100, between months 2 and 3; this is an increase of 9% (approximately). The 1% figure doesnt
hold here, but an analysis of the table shows that the load factor increased substantially, from 62 to 70. Cross-price elasticity is the "percentage by which the demand of
the first item will change if the price of a second item (a related product) rises by 1%, other things equal (including the price of the first item)" (Png and
...