CalculateMeasure

Business

Price Elasticity Calculator

Calculate arc price elasticity of demand using midpoint percentage changes in quantity and price.

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Calculator guide

How to use the Price Elasticity Calculator

Calculate arc price elasticity of demand using midpoint percentage changes in quantity and price. Enter the requested values and select Calculate. The result and supporting values are produced locally in your browser.

Formula

Elasticity = [(Q₂−Q₁)/((Q₁+Q₂)/2)] ÷ [(P₂−P₁)/((P₁+P₂)/2)]

Worked example

If price rises from 10 to 11 while quantity falls from 1,000 to 900, midpoint elasticity is approximately −1.11.

What to keep in mind

  • The negative sign reflects the usual inverse relationship between price and quantity demanded.
  • Midpoint (arc) elasticity reduces sensitivity to which observation is treated as the starting point.

Methodology

This calculator uses deterministic arithmetic and performs the calculation locally in your browser. Verify assumptions, units, and source values for your specific use case.

Review standard: Level B · Industry formula. How calculator reviews work.

Frequently asked questions

What does this calculator calculate?

Calculate arc price elasticity of demand using midpoint percentage changes in quantity and price.

How is the result calculated?

Elasticity = [(Q₂−Q₁)/((Q₁+Q₂)/2)] ÷ [(P₂−P₁)/((P₁+P₂)/2)].

Can I use the result for an important decision?

Use the result as a calculation aid and verify the inputs, assumptions, and applicable professional or regulatory requirements before relying on it for an important decision.

Does CalculateMeasure store the values I enter?

The calculator performs its arithmetic in your browser. The calculator itself does not need to send your entered values to a server to produce the result.