World Price Elasticities of Demand (All elasticities are in absolute values)

Transportation services- 1.03

Then, on a Word document or Excel spreadsheet (to be submitted at the end of this assignment) answer the following questions.

Given that price elasticity you have selected: - Is the quantity sold elastic or inelastic with respect to price? - If price rose 20% in your industry, by how much would sales go up or down? - If price rose 20%, by how much would total revenue from sales of the good, go up or down?

2. Now, install a forecasting and analysis tool using Excel or Google Sheets. The following guides will help you install and activate the Excel (or Google Sheets) tool that will make it possible for you to predict the future:

• Excel ToolPak
• Google Sheets OpenSolver

You can also view Microsoft's Analysis ToolPak guide.

3. Collect data for the last few years for your industry and enter it into a spreadsheet: (Annual for twenty years or more; quarterly for at least 5 years; or monthly for at least two years).

You will want to collect: Industry Sales Data ($ and Quantity) Key Firm Sales Data ($ and Quantity) Cost to produce the good or profitability

4. Now that you have this tool installed and a collection of data from your industry in a spreadsheet, you can create predictions for the future. You will use the tools in the Excel Analysis pack to predict your industry's future a couple of different ways. - Use the Moving Average tool to predict sales for the next year. - Use the Exponential Smoothing to predict sales the next year. - Is there any other data that you would like to collect to help predict the future sales of your industry? - What do you expect will happen in this industry for the next few years?

Add your answers to the same Word doc or Excel spreadsheet.