Price elasticity calculator with workings
Enter price and quantity before and after. You get the arc elasticity (midpoint method), the elasticity relative to the start, whether demand is elastic and the change in revenue.
Result
- Arc elasticity (midpoint method)
- −1.2222
- Elasticity relative to the starting point
- −1
- Demand is
- elastic (|ε| > 1)
- Revenue before → after
- 1,000 → 960
The midpoint method gives the same value for a price rise and the matching fall, which is why many courses use it. The task usually says which version is meant.
Workings
- 1Change in quantity relative to the midpoint: (80 − 100) / 90 = −22.22%
- 2Change in price relative to the midpoint: (12 − 10) / 11 = 18.18%
- 3ε = −22.22% / 18.18% = −1.2222
- 4Relative to the start: (−20 / 100) / (2 / 10) = −1
- 5Revenue: 10 × 100 = 1,000 → 12 × 80 = 960
How it works
ε = (ΔQ / Q̄) / (ΔP / P̄)
Frequently asked questions
Why is the elasticity negative?+
Demand falls when the price rises. To classify it, use the absolute value.