Price Elasticity of Demand Calculator
Price elasticity of demand measures the responsiveness of the quantity demanded of a product to a change in price. With the price elasticity of the demand, you can estimate the need for the product under manufacturing. You can check the change in the response of the customer with a unit percent change in the price.
PED or Ed represents the price elasticity of demand.
Table of Contents
Types of Price Elasticity of Demand
There are three types of elasticity of demand:
Highly elastic demand
The demand that is elastic has a proportionate change in quantity demanded is more than a given change in price. Ef > 1 (in absolute terms) .Such goods are known as luxuries.
Unitary elastic demand
The demand that is unit elastic makes a proportionate change in quantity demanded with an equal change in price. Ef = 1 (in absolute terms).demand curves are shaped like a rectangular hyperbola, asymptotic to the axes
Relatively inelastic demand
The demand that is inelastic having proportional changes in quantity demanded is less than the proportionate change in price. Ef < 1 (in absolute terms).Such goods are called necessities.
Formula of Price Elasticity of Demand Calculator
Price Elasticity of Demand = %change in quantity / %change in price
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If the answer is equal to 1 the price then it is called a Unitary
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If the answer is equal to ∞ the price then it is called Perfect elastic.
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If the answer is less than 1 the price then it is called Inelastic.
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If the answer is greater than 1 the price then it is called Elastic.
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If the answer is equal to 0 the price then it is called Perfect inelastic.
Note:
To know about Bayes Theorem, visit our Bayes Theorem Calculator.
How to use the Price Elasticity of Demand Calculator?
The steps to use the price elasticity of demand calculator are as follows:
Step 1: Enter the value of the initial price in the first required input.
Step 2: Enter the value of the initial quantity in the second required input.
Step 3: Enter the value of the final price in the third required input.
Step 4: Enter the value of the final quantity in the fourth required input.
Step 5: The calculator will automatically display an answer on the screen.
Calculator use
With the calculator use, you can estimate the price elasticity of demand without any complicated calculations. Get the percentage by simply putting the values. You do not have to deal with the formula every time by using the calculator.
