Year of Graduation
A Study of Price Elasticity of Demand for Books
The paper presents a model of book demand and the results of estimation of elasticity of demand on price. As a database used a sample with information on bookstore sales. 7 demand models was built and evaluated. All the hypotheses were confirmed. The demand for books was inelastic and the price ratio has turned negative. The study also found that the elasticity of demand on price between genres is different. Confirmation of the hypothesis that expensive books are luxury goods were achieved. Limitations of the work are the presence of heteroscedasticity and the presence of missing significant variables.