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.After you've finished with your calculations why not have a celebration? Let's Party is your one stop shop for all things bright, colourful and shiny.
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