Are you Analyzing price elasticity of demand? Enter the initial and final prices and quantities, and our Price Elasticity of Demand Advanced Calculator will calculate the elasticity for you.
Price Elasticity Demand Calculator
Price Elasticity of Demand Advanced Calculator
Component | Description |
---|---|
Initial Price (P₁) | The initial price of the good or service. |
Final Price (P₂) | The final price of the good or service. |
Initial Quantity (Q₁) | The initial quantity demanded of the good or service. |
Final Quantity (Q₂) | The final quantity demanded of the good or service. |
Price Elasticity of Demand (PED) | The responsiveness of the quantity demanded to changes in price. |
Formula | PED = [(Q₂ – Q₁) / (Q₁ + Q₂) / 2] / [(P₂ – P₁) / (P₁ + P₂) / 2] |
Purpose | Used to calculate the price elasticity of demand, aiding in understanding consumer behavior and pricing strategies. |