Cost elasticity of need is just a dimension that determines exactly how interest in products or solutions may improvement in reaction to modification when you look at the costs of these products or solutions.
How exactly to make use of the price elasticity of need calculator:
- Input the price that is current
- Input the new price
- Input the quantity that is current
- Input the quantity that is new
- Click the “Calculate” button to build the outcomes.
We have: Initial Price (PI) = PI, New Price (PN) = PN, Initial Quantity (QI) = QI, New Quantity (QN) = QN.
PED = ( (QN в€’ QI) / (QN + QI) / 2) / ( (PN – PI) / (PN + PI) / 2)
Since INPED в‡’ INTR.