Finance

Price Elasticity of Demand Calculator

Measure consumer sensitivity to price changes using the midpoint method.

Initial Price ($)

New Price ($)

Initial Quantity

New Quantity

PED (Midpoint)—

% Change in Quantity—

% Change in Price—

Demand Type—

Midpoint Method:
PED = (ΔQ/((Q1+Q2)/2)) / (ΔP/((P1+P2)/2))

About Price Elasticity of Demand

PED measures how sensitive quantity demanded is to price changes. |PED| > 1 = elastic (demand changes more than price); |PED| < 1 = inelastic (demand barely changes). The midpoint method avoids different results depending on direction.