Hi, need to submit a 1000 words essay on the topic An Empirical Project on The Effect of Variable A on Variable B.In this research, the two variables in the investigation is the price of a pair of sho

Hi, need to submit a 1000 words essay on the topic An Empirical Project on The Effect of Variable A on Variable B.

In this research, the two variables in the investigation is the price of a pair of shoe and its demand in the market. To achieve this, several tools would be in place to determine whether there is indeed a relationship between the price and demand of a commodity. The tool used in this research is the price of elasticity of demand. In calculating the price elasticity of demand, the tool exploits the use of other several factors which have a role in determining demand and price of a commodity. The price of a single type of shoe can influence the demand for that pair in a number of ways. Price is in different stimuli that affect demand. To come up with the right conclusion on the effect of price on demand, certain price factors to be considered include the average price, nominal price, real price, nominal price, price levels and price changes (Landsburg 18). To explore such dimensions of price, it would depend on the data available. The price level refers to the price that is set on a commodity in a certain region. To approximate the price level, it is important to use the price index. The nominal value is the value of the commodity in terms of real currency. The real value is a measure of the market purchasing power after some period of time. In determining the estimates for the price elasticity of demand, the following model was in use. wGi= aGi + bGln xi + qGHln pH + • zi + uGi.