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Price Elasticity of Demand Calculator

Answers the Question

How much will changing my price affect the number of goods sold?

Calculator for Price Elasticity of Demand

 

What Is the Price Elasticity of Demand?

For most normal goods, the price elasticity of demand will be negative. This means that as a good's price increases, fewer of them will be sold.

The question is, which rises faster, the price of the good, or the quantity that customers will purchase?

When the price elasticity of demand is between 0 and -1, increasing the price will result in an increase in total revenue.

When the price elasticity of demand is less than -1, increases in price lead to a reduction in total revenues.

Why Is it Important?

Formula(s) to Calculate Price Elasticity of Demand

Common Mistakes

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