价格
需求量
Results will appear here
Results
Price Elasticity of Demand
Interpretation
Calculation Principles & Formulas
Price Elasticity of Demand (PED) measures how the quantity demanded of a good changes when its price changes. It helps businesses set pricing strategies: if demand is elastic, lowering prices might increase revenue; if inelastic, raising prices might increase revenue. The Midpoint Method (Arc Elasticity) is commonly used to ensure consistent results regardless of the direction of change.
[Formula - Midpoint Method]
Elasticity = (% Change in Quantity) / (% Change in Price)
Specific Formula:
PED = [(Q2 - Q1) / ((Q1 + Q2) / 2)] / [(P2 - P1) / ((P1 + P2) / 2)]
Where:
Q1, Q2 = Initial Quantity, Final Quantity
P1, P2 = Initial Price, Final Price
Note: The absolute value is typically used for analysis. |PED| > 1 is Elastic, |PED| < 1 is Inelastic, |PED| = 1 is Unit Elastic.
