Price Elasticity of Demand Calculator
Calculate the Price Elasticity of Demand (PED) from changes in price and quantity demanded. Determine if demand is elastic, inelastic, or unitary.
How to Use the Price Elasticity Calculator
- Enter the old price and new price.
- Enter the old quantity and new quantity demanded.
- Click Calculate to see PED value and demand type.
Casos de Uso
- •Analysing how price changes will affect sales volume.
- •Setting optimal prices to maximise revenue.
- •Understanding consumer sensitivity to price promotions.
- •Evaluating tax or subsidy impacts on market quantities.
Fórmula
PED = (% change in quantity) / (% change in price). |PED| > 1 = elastic, |PED| < 1 = inelastic, |PED| = 1 = unitary.
Preguntas Frecuentes
What is price elasticity of demand?
PED measures how much the quantity demanded of a good changes in response to a change in its price.
What does elastic demand mean?
Elastic demand (|PED| > 1) means consumers are sensitive to price changes — a small price increase causes a large drop in quantity.
What products have inelastic demand?
Essential goods like medicines, fuel, and utilities tend to have inelastic demand as consumers buy them regardless of price changes.