# 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 = ( (P_{2} - P_{1}) / ((P_{2} + P_{1})/2) ) x 100

Percent Change in Quantity = ( (Q_{2} - Q_{1}) / ((Q_{2} + Q_{1})/2) ) x 100

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})

Use the midpoint formula to calculate elasticity to ensure a uniform measure