Price elasticity relates to the responsiveness to the quantity demanded of a product or service to a change in the price. Elasticity can also be related to the responsiveness of supply offered to a change in price. This price elasticity of demand calculator was created to facilitate the simple calculation of PED. This calculator will show you both the formula for working out price elasticity of demand as well as each of the steps through the calculation. This calculator uses the midpoint method for calculating elasticity which is more accurate than using the simple percentage variances for quantity demanded and price. By using the midpoint method the elasticity result is the same for a price decrease or increase as the midpoint is literally between quantity1 and quantity2 as well as price1 and price2. Please note the results have been applied an absolute value (always positive) for ease of understanding.
New or Observed Quantity
Old or Expected Quantity
New Price
Old Price
Quantity Calculation
Step 1
Step 2
Step 3
Price Calculation
Step 1
Step 2
Step 3
Elasticity Calculation
If you've found a bug, or would like to contact us please click here.
Calculate.co.nz is partnered with Interest.co.nz for New Zealand's highest quality calculators and financial analysis.
Copyright © 2019 calculate.co.nz All Rights Reserved. No part of this website, source code, or any of the tools shall be copied, taken or used without the permission of the owner. All calculators and tools on this website are made for educational and indicative use only. Calculate.co.nz is part of the realtor.co.nz, GST Calculator, GST.co.nz, and PAYE Calculator group.