Price Elasticity of Demand Calculator
Price Elasticity of Demand Calculator helps calculating the Price Elasticity of Demand.
What is Price Elasticity of Demand?
Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price, ceteris paribus. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price.
The Formula of Price Elasticity of Demand
Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
Example of Price Elasticity of Demand
For example, If the price of a product increases by 10% and as a result the quantity demanded decreases by 5%, the Price Elasticity of Demand equals -0.50 (-5/10).