Price Elasticity Calculator
Calculate signed midpoint arc elasticity, log-ratio elasticity and revenue change from two comparable price/quantity observations.
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Result
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Calculation steps
Work through one step at a time or reveal the complete calculation. The steps use your current inputs.
How to calculate
Calculate midpoint-normalized price and quantity changes, divide quantity change by price change and compare the two observed revenues.
Arc elasticity=[ΔQ/average(Q)]/[ΔP/average(P)]
Worked example
Price 10 to 12 and quantity 100 to 90 give midpoint arc elasticity about −0.578947. Observed revenue changes from 1000 to 1080.
Assumptions and input details
Prices and quantities must be positive and measured on consistent unit/time bases. The sign is preserved. No price change leaves elasticity undefined. Two observations do not isolate a causal demand response; seasonality, promotions, supply constraints, competitor changes, uncertainty and future demand are not inferred. Log-ratio elasticity is shown as a different finite-change convention.
Using this calculator
Can I enter my own problem?
Yes. Replace the example values with your own inputs. The result, calculation steps, tables and applicable diagrams update from those inputs. Blank or invalid values clear the result; example values are never silently substituted for missing inputs.
Are the results exact?
Results use floating-point arithmetic and displayed rounding. Read the formula, assumptions and any stated data precision before interpreting the result.
Is my input uploaded?
The calculation runs in your browser. No account, file upload or external AI service is required. Inputs are not saved between page reloads.
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