Calculating Price Elasticities Using the Midpoint Method
(Step by Step Calculation)
Midpoint Method for PED Calculator
An online economics PED calculator to computes the price elasticity which measures the quantity demand in respond to price change.
Step by step calculation
Price Elasticity of Demand(PED) for Mid-Point Method Formula :
Price Elasticity (PED or Ed) = Percent Change in Quantity / Percent Change in Price
Where
Percent Change in Price = ( (P2 - P1) / ((P2 + P1)/2) ) x 100
Percent Change in Quantity = ( (Q2 - Q1) / ((Q2 + Q1)/2) ) x 100
P1 this is the first price point
P2 this is the second price point
Q1 is the quantity point associated with the first price point (P1)
Q2 is the quantity point associated with the second price point (P2)
Use the midpoint formula to calculate elasticity to ensure a uniform measure