Price Elasticity of Demand Calculator
Calculate PED and understand demand responsiveness to price changes
Please enter a valid percentage for quantity change
Please enter a valid percentage for price change
Price Elasticity of Demand Results
Quantity Change:
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Price Change:
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Price Elasticity of Demand:
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📈 How to Use the Price Elasticity of Demand Calculator
- Enter Quantity Change: Input the percentage change in quantity demanded (can be positive or negative)
- Enter Price Change: Input the percentage change in price (can be positive or negative)
- Click Calculate: Get instant PED value and interpretation
- Analyze Results: Understand whether demand is elastic, inelastic, or unit elastic
💡 Understanding Price Elasticity of Demand
Price Elasticity of Demand (PED) measures how responsive the quantity demanded of a good is to changes in its price. It’s calculated as:
PED = (% Change in Quantity Demanded) ÷ (% Change in Price)
📊 Interpretation Guide:
- Elastic Demand (|PED| > 1): Quantity demanded is highly responsive to price changes. A small price change leads to a large change in quantity demanded.
- Inelastic Demand (|PED| < 1): Quantity demanded is less responsive to price changes. Price changes have a smaller effect on quantity demanded.
- Unit Elastic Demand (|PED| = 1): The percentage change in quantity demanded equals the percentage change in price.
🎯 Business Applications:
- Pricing Strategy: Understanding elasticity helps businesses set optimal prices
- Revenue Optimization: Elastic goods may benefit from lower prices, inelastic goods from higher prices
- Market Analysis: Helps predict consumer behavior and market responses
- Product Development: Guides decisions on product positioning and marketing