Demand & Elasticity

-Taj Vivanta customer survey

GROUP 4

NAME ROLL NO

ALDEN TEREZA 55BERTILA D’SOUZA 12EESHA PRABHU 42

NIKITA FERNANADES 17TRUPTI GHANEKAR 22VAIBHAV SAWANT 49

Purpose

•To calculate demand & hence the elasticity for a change in:

1. Income

2. Price

3. Competitors price

IncomePerson#/Question# 1 2 3 4

1 3-4 3-4 Same Continue

2 4-6 4-6 Same Continue3 5-6 5-6 Same Continue4 5-6 5-6 Same Continue

5 3-4 3-4 Same Continue6 5-6 5-6 Same Continue7 12-13 12-13 Same Continue8 9-10 9-10 Same Continue9 6-7 6-7 Same Continue

10 6-7 6-7 Same Continue

Income elasticity of demand

EID= % change in demand % change in income

EID = cannot be determined as there is neither change in demand nor in income

Q# Question Options1 Income previous year(range in lacs) 2 Income present year(range in lacs) 3 % increase in income this year

4

with higher income this year, will you continue to come to Taj Vivanta(continue) or switch to a different hotel with better facilities and may be higher price(switch)?

a Continue b Switch

PricePerson#/Question# 5

1 20%

2 20%

3 20%

4 20%

5 20%

6 10%

7 20%

8 20%

9 20%

10 20%

Q# Question Options5 At what % increase in price will you stop coming to Taj Vivanta? a 10% b 20% c 30% d 40%

Price elasticity of demand

EPD= % change in demand % change in price

At 10%, EPD =1

At 20%, EPD =5

Competitors price

Q# Question Options6 At what % decrease in price will you switch to a competitors hotel?

a 10% b 20% c 30% d 40%

Person#/Question# 6

1 30%

2 30%

3 30%

4 30%

5 30%

6 20%

7 30%

8 30%

9 30%

10 30%

Cross elasticity of demand

ECD= % change in demand % change in competitors price

At 10%, ECD =0

At 20%, ECD =0.5

At 30%, ECD =3.33

Thank you