Price Elasticity of Demand (Midpoint) Calculator
Uses midpoint (arc) method. Enter initial & final price/quantity to get PED, revenue impact, and classification.
🧩 Inputs
$
units
$
units
📊 Results
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🧮 Step-by-step derivation (midpoint method)
Enter P₀, Q₀, P₁, Q₁ to see the algebra here.
⚡ Quick summary
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📚 References & formulas
| Item | Formula / Assumption |
|---|---|
| Percent change in Q (midpoint) | (Q₁ − Q₀) / ((Q₁ + Q₀)/2) |
| Percent change in P (midpoint) | (P₁ − P₀) / ((P₁ + P₀)/2) |
| Elasticity (PED) | PED = (%ΔQ) / (%ΔP) |
| Revenue | R = P × Q; ΔR = P₁Q₁ − P₀Q₀ |
| Classification | |PED| > 1: Elastic; =1: Unitary; <1: Inelastic (sign usually negative) |
Notes: PED via midpoint (arc) method; sign typically negative as P and Q move inversely.