business

Price Elasticity Calculator

Calculate price elasticity of demand to understand how price changes affect demand. Optimize pricing strategies for maximum revenue.

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Initial Price ($)

Final Price ($)

Initial Quantity Sold

Final Quantity Sold

Elasticity Type

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What is Price Elasticity?

Price elasticity of demand measures how quantity demanded responds to price changes. Elastic demand (|elasticity| > 1) means quantity changes more than price. Inelastic demand (|elasticity| < 1) means quantity changes less than price. Understanding elasticity helps businesses optimize pricing strategies, predict revenue changes, and make informed decisions about price adjustments.

How to use

Enter the initial and final prices, along with initial and final quantities sold. Select the calculation method (Arc elasticity is recommended for larger changes, Point elasticity for small changes). The calculator displays elasticity value, classification (elastic/inelastic), and shows how revenue would respond to various price changes.