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`PE_D = ( CD )/( CP )`

Enter a value for all fields

The **Price Elasticity of Demand** calculator computes the ratio of the percent change in quantity demanded and the percent change in price.

**INSTRUCTIONS:** Enter the following:

- (
**CD**) This it the percent Change in Quantity Demanded - (
**CP**) This is the percent Change in Price

**Price Elasticity of Demand (PE _{D}):** The calculator returns the ratio as a real number (e.g. 4). However, this can be automatically converted to a percent (e.g. 400%) via the pull-down menu.

The formula for Price Elasticity of Demand is:

PED = CD / CP

where:

- PED = Price Elasticity of Demand
- CD = Percent Change in Quantity Demanded
- CP = Percent Change in Price

Note: A more reliable way to compute price elasticity of demand is via the Midpoint Method. The formula for Midpoint Method of Price Elasticity of Demand is:

`PED = ((Q_2 - Q_1) ÷ (Q_2 + Q_1)"/"2) / ((P_2 - P_1) ÷ (P_2 + P_1)"/"2) = ("Percent Change in Quantity")/("Percent Change in Price")`

where:

- PED is the Price Elasticity of Demand
- P
_{1}this is the first price point - P
_{2}this is the second price point - Q
_{1}is the quantity point associated with the first price point (P_{1}) - Q
_{2}is the quantity point associated with the second price point (P_{2})

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- Mankiw, N. Gregory. "Chapter 5:The Elasticity of Demand."
*Principles of Macroeconomics*. 6th ed. Mason, OH: Thomson/South-Western, 2004. 91. Print. - “Chapter 7 Consumer Choice and Elasticity.”
*AP Microeconomics 2018*, by Eric R. Dodge, McGraw Hill Education, 2017.