Supply and Demand Supply and Demand in Pricing Simulation Panopto of PPT. Explains what the supply and demand curves look like in the simulation, and how to price with a vertical supply curve, making sure you don't have unfilled orders. Demand and Elasticity Panopto of PPT explaining demand concepts, such as meaning of a demand curve, difference between the Demand Curve and Quantity Demanded, what causes a demand curve to shift, price elasticity of demand as an efficient way to measure the responsiveness of Quantity demanded (Q) to changes in Price (P), how to compute price elasticity, the error of calculating elasticity () with P,Q points from different demand curves, using the formula for elasticity to compute rental car price elasticity, comparing weekend vs weekday demand (magnitude & elasticity), effect of competitor price on Universal's own-price elasticity, and limits on elasticityinfinity (horizontal demand curve & zero (vertical demand curve). Addendum to Demand and Elasticity Panopto of simulation screens demonstrating how to collect P,Q data from pricing simulation to estimate elasticities for two points (P=44 and 46). Wkday and Wkend elasticities scenario w constant demand Spreadsheet provides elasticity results for weekday & weekend over wide range of prices. Calculated from simulation scenario with constant demand. Use these elasticities in your analysis. You don't need to recompute them. Price responsiveness of customersmeasured by price elasticity of demand. How does knowing this help you as manager of Universal? Explain how to estimate price elasticity conceptually and with data from the simulation (i.e., explain how elasticities in spreadsheet were computed). Referring to spreadsheet, why do price elasticities increase (in absolute value) as rental price increases? Why is weekend demand more elastic (i.e. higher price elasticity in absolute value) than weekday demand? Relationship between Price Elasticity and Revenue Panopto of PPT explaining how revenue responds to price increases when demand is inelastic (rev increases) and when demand is elastic (rev decreases). Explain how revenue changes with changes in price over the price ranges represented in elasticity spreadsheet. What are the implications for Universal's pricing decisions?