MediumTime Seriests-255

Price Elasticity

Problem

Compute demand after a price change under constant elasticity: demand0 * (price1 / price0)^elasticity.

Return 0.0 when price0 is not positive. A typical elasticity is negative, so raising price lowers demand.

Hint

Demand forecasting pipelines often include price as a causal driver.

case 1

in: [100,10,11,-1.5]

expected: 86.67841720414474

case 2

in: [100,10,9,-1.5]

expected: 117.12139482105108

case 3

in: [50,0,5,-1]

expected: 0

case 4

in: [10,2,2,-2]

expected: 10

Starter codePython

def price_elasticity(demand0, price0, price1, elasticity):
    # Your code here
    pass

4 test cases · run your code against them in the editor