Price Elasticity of Demand Calculator

Calculate how price changes affect demand for products and services

Initial Values

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Final Values

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Understanding Price Elasticity of Demand

Price elasticity of demand (PED) measures how responsive quantity demanded is to a change in price. It helps businesses and economists understand consumer behavior and make pricing decisions.

How to Interpret Results

  • |PED| > 1: Elastic demand (quantity changes more than price)
  • |PED| < 1: Inelastic demand (quantity changes less than price)
  • |PED| = 1: Unit elastic (quantity changes proportionally to price)

Common Examples

Luxury items typically have elastic demand (|PED| > 1) while necessities like medication tend to have inelastic demand (|PED| < 1).