Price Elasticity of Demand Calculator

Calculate price elasticity of demand using midpoint method with prices and quantities, plus revenue change and interpretation for decision making.

Initial price (P₀)

Starting unit price > 0 (currency agnostic).

Initial quantity (Q₀)

Units sold at P₀ > 0. Same time period as Q₁.

Final price (P₁)

New unit price > 0, different from P₀.

Final quantity (Q₁)

Units sold at P₁ > 0. Same units as Q₀.

Equation Preview

Midpoint formula: \( \text{PED}=\dfrac{\Delta Q/\bar{Q}}{\Delta P/\bar{P}} \) where \( \bar{Q}=\frac{Q_1+Q_0}{2}, \bar{P}=\frac{P_1+P_0}{2} \).
Sign is usually negative (price ↑ → quantity ↓). We also show magnitude \( |\text{PED}| \) for interpretation.
Revenue: \( R = P \times Q \). Compare \( R_0 = P_0Q_0 \) and \( R_1 = P_1Q_1 \) to see impact. :contentReference[oaicite:1]{index=1}