In this dialog, you set out how demand for a Service (in terms of Penetration or Traffic per Connection) is influenced by the tariffs that are charged for the provision of that Service. The demand set in the Service Demand dialog is used as the reference for Tariff Feedback to Demand. You specify how you want this Reference Demand to be influenced by changes in each tariff (Connection, Rental and Usage).
Price Elasticity
Controls the extent to which a change in a tariff introduces a change in demand. For the particular value of 1, demand changes in inverse proportion to tariff.
Default: Constant {0.0}. Demand is not affected by tariff.
Reference Tariff
A tariff which qualifies the (reference) demand assumptions for a Service. The actual Penetration and Annual Traffic per Connection applied in the model are scaled from the input assumptions, according to proportional changes in the actual tariffs charged compared to the corresponding Reference Tariffs, to an extent governed by the respective Price Elasticities. Reference Tariffs are only required when a positive Price Elasticity has been defined.
Default: Constant {0.0}.