Determining the price elasticity of demand with and without memory effects using fractional order derivatives: A numerical simulation approach
Demand elasticity is the sensitivity of changes in the number of goods demanded by consumers due to changes in the price of goods. This paper compares the price elasticity of demand with and without memory effect using fractional-order derivatives. This study is designed using the developme...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Growing Science
2022-01-01
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| Series: | Decision Science Letters |
| Online Access: | http://www.growingscience.com/dsl/Vol11/dsl_2022_7.pdf |
| _version_ | 1828498974977294336 |
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| author | Muhamad Deni Johansyah Julita Nahar Eddy Djauhari Herlina Napitupulu Jumadil Saputra |
| author_facet | Muhamad Deni Johansyah Julita Nahar Eddy Djauhari Herlina Napitupulu Jumadil Saputra |
| author_sort | Muhamad Deni Johansyah |
| collection | DOAJ |
| description | Demand elasticity is the sensitivity of changes in the number of goods demanded by consumers due to changes in the price of goods. This paper compares the price elasticity of demand with and without memory effect using fractional-order derivatives. This study is designed using the development theory of fractional derivatives for the economic field in determining the price elasticity of demand. The result of numerical simulation using the value of α and p indicated that the price elasticity of demand with memory effect is more accurate than without the memory effect. Furthermore, this study concluded that the price elasticity of demand does not only depend on the latest price (current price) but changes in all prices from a specific time interval. The findings of this study suggest future studies can examine the phenomenon of market equilibrium using fractional-order derivatives. |
| first_indexed | 2024-12-11T13:16:35Z |
| format | Article |
| id | doaj.art-c2e4e4f6ce4f446cb7774d4a03bd168d |
| institution | Directory Open Access Journal |
| issn | 1929-5804 1929-5812 |
| language | English |
| last_indexed | 2024-12-11T13:16:35Z |
| publishDate | 2022-01-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Decision Science Letters |
| spelling | doaj.art-c2e4e4f6ce4f446cb7774d4a03bd168d2022-12-22T01:06:03ZengGrowing ScienceDecision Science Letters1929-58041929-58122022-01-0131132210.5267/j.dsl.2022.2.002Determining the price elasticity of demand with and without memory effects using fractional order derivatives: A numerical simulation approachMuhamad Deni JohansyahJulita NaharEddy DjauhariHerlina NapitupuluJumadil Saputra Demand elasticity is the sensitivity of changes in the number of goods demanded by consumers due to changes in the price of goods. This paper compares the price elasticity of demand with and without memory effect using fractional-order derivatives. This study is designed using the development theory of fractional derivatives for the economic field in determining the price elasticity of demand. The result of numerical simulation using the value of α and p indicated that the price elasticity of demand with memory effect is more accurate than without the memory effect. Furthermore, this study concluded that the price elasticity of demand does not only depend on the latest price (current price) but changes in all prices from a specific time interval. The findings of this study suggest future studies can examine the phenomenon of market equilibrium using fractional-order derivatives.http://www.growingscience.com/dsl/Vol11/dsl_2022_7.pdf |
| spellingShingle | Muhamad Deni Johansyah Julita Nahar Eddy Djauhari Herlina Napitupulu Jumadil Saputra Determining the price elasticity of demand with and without memory effects using fractional order derivatives: A numerical simulation approach Decision Science Letters |
| title | Determining the price elasticity of demand with and without memory effects using fractional order derivatives: A numerical simulation approach |
| title_full | Determining the price elasticity of demand with and without memory effects using fractional order derivatives: A numerical simulation approach |
| title_fullStr | Determining the price elasticity of demand with and without memory effects using fractional order derivatives: A numerical simulation approach |
| title_full_unstemmed | Determining the price elasticity of demand with and without memory effects using fractional order derivatives: A numerical simulation approach |
| title_short | Determining the price elasticity of demand with and without memory effects using fractional order derivatives: A numerical simulation approach |
| title_sort | determining the price elasticity of demand with and without memory effects using fractional order derivatives a numerical simulation approach |
| url | http://www.growingscience.com/dsl/Vol11/dsl_2022_7.pdf |
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