Price Elasticity of Demand for Sugar

Sanket .S. Shirodkar (Leader)

Kushal Doshi
Shruti Jain
Varsha Baldewa
Nimesh Gala
Mayur Patel
 Varsha Baldewa Roll No :- 27

UPPER P1 Q1 P2 Q2 %ΔQ %ΔP Ep

(% Change In (% Change In (%ΔQ/% ΔP)
CLASS Quantity) Price)

Family-1 21 5.00 33 5.00 0.00 0.57 0.00

Baldewa ( No change in consumption )

Family-2 21 6.00 33 6.00 0.00 0.57 0.00

Somani
( Price increases income increases )
Family-3 21 6.00 33 3.00 -0.50 0.57 -0.87
Jain ( Diabetics Patient increase in family )
Family-4 21 2.00 33 2.00 0.00 0.57 0.00
Mandhara ( Small family so price doesn’t matter)
Family-5 21 4.00 33 7.00 0.75 0.57 1.31
Gupta ( Nuclear family change to joint family)
 Kushal Doshi Roll No :- 33

UPPER P1 Q1 P2 Q2 % ΔQ %ΔP Ep
(%Change in (%ΔQ/% ΔP)
CLASS (% Change In
price )
Quantity)
( Make
Family-1 21 3.00 33 3.00more 0.00 0.57 0.00
sweets )
Gandhi
( No change in consumption )
Family-2 21 5.00 33 4.00 -0.20 0.57 -0.35
Shah
( Sweet comes from market )
Family-3 21 4.00 33 4.00 0.00 0.57 0.00
Patel
( No change in consumption )
Family-4 21 4.00 33 7.00 0.75 0.57 1.31
Doshi
( Make more sweet )
Family-5 21 2.00 33 2.00 0.00 0.57 0.00
Parmar ( Price increase income increase )
 Mayur Patel Roll No :- 41

MIDDLE P1 Q1 P2 Q2 %ΔQ %ΔP Ep

(% Change In (% Change In (%ΔQ/% ΔP)
CLASS Quantity) Price)

Family-1 21 1.00 33 0.75 -0.25 0.57 -0.43

Gala
( Because of increase in price )
Family-2 21 1.50 33 1.25 -0.16 0.57 -0.29
Patel
( Death in family )
Family-3 21 1.50 33 2.00 0.33 0.57 0.58
Bhanushali
( Increase in no of family member )
Family-4 21 2.00 33 1.75 -0.12 0.57 -0.21
Gupta
( Because of increase in price )
Family-5 21 1.75 33 1.50 -0.14 0.57 -0.25
Lakhani
( Because of increase in price )
 Nimesh Gala Roll No :- 42

MIDDLE P1 Q1 P2 Q2 %ΔQ %ΔP Ep

(% Change In (% Change In (%ΔQ/% ΔP)
CLASS Quantity) Price)

Family-1 21 2.00 33 5.00 1.50 0.57 2.62

Gala
( Festival season )
Family-2 21 1.50 33 1.25 -0.16 0.57 -0.29
Sangvi
( Because of increase in price )
Family-3 21 2.00 33 1.50 -0.25 0.57 -0.43
Gada
( Head person income decrease in family )
Family-4 21 2.00 33 1.75 -0.12 0.57 -0.21
Savla
( Substitute effect )
Family-5 21 3.00 33 2.50 -0.16 0.57 -0.29
Gosar
( Child shifted to hostel )
 Shruti jain Roll No :- 38

LOWER P1 Q1 P2 Q2 %ΔQ %ΔP Ep

(% Change In (% Change In (%ΔQ/% ΔP)
CLASS Quantity) Price)

Family-1 21 2.00 33 1.00 -0.50 0.57 -0.87

Mahta
( Rise in price of sugar )
Family-2 21 3.00 33 0.25 -0.91 0.57 -1.60
Patel
( Income decrease so that’s why sugar price not affordable )
Family-3 21 2.00 33 0.50 -0.75 0.57 -1.31
Kumar
( Lower Income )
Family-4 21 1.00 33 0.25 -0.75 0.57 -1.31
Kapur
( Rise in price of sugar )
Family-5 21 1.75 33 1.50 -0.14 0.57 -0.25
Parekh
( Price effect )
 Sanket Shirodkar Roll No :- 15

MIDDLE P1 Q1 P2 Q2 %ΔQ %ΔP Ep

(% Change In (% Change In (%ΔQ/% ΔP)
CLASS Quantity) Price)

Family-1 21 2.50 33 2.50 0.00 0.57 0.00

Patil
( No change in quantity consumed)
Family-2 21 1.00 33 0.75 -0.25 0.57 -0.43
Shetty
( 3 member family reduces consumption habit)
Family-3 21 3.00 33 2.75 -0.08 0.57 -0.14
Dalmiya
( Family members begin to consume less sugar )
Family-4 21 2.00 33 2.00 0.00 0.57 -0.00
Dubey
( No change in quantity consumed)
Family-5 21 1.75 33 0.75 -0.57 0.57 -1.0
Singh
( 2 members moved out due to job responsibilities )
 Conclusion

 Average price elasticity Ep = ∑ |Ep| / no of readings

= 16.36/30
= 0.5453
 Shows that curve is inelastic as the value of elasticity is
<1
 Sugar is a basic commodity that people use everyday.
Hence is seen that even though the price of the
commodity falls steeply there is no much change in the
quantity demanded
Thank You…