Price Elasticity of Demand Calculator

Calculate how responsive demand is to price changes

Initial Price ($)

Initial Quantity

Final Price ($)

Final Quantity

-1.25

Elastic Demand

●

Initial Revenue

$70,000

Final Revenue

$64,000

Revenue Change

-8.57%

CALCULATION STEPS

Midpoint Formula:

PED = (Q₁ - Q₀) / [(Q₁+Q₀)/2] ÷ (P₁ - P₀) / [(P₁+P₀)/2]

Elastic Demand (PED < -1): Quantity demanded changes more than price. Raising prices may decrease revenue.

Unit Elastic (PED = -1): Quantity demanded changes exactly with price. Revenue remains unchanged.

Inelastic Demand (-1 < PED < 0): Quantity demanded changes less than price. Raising prices may increase revenue.