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BusinessEdexcel (9BS0)Theme 1.3

Price Elasticity of Demand Calculator

Edexcel A-Level Business

Price Elasticity of Demand (PED) measures how sensitive consumer demand is to a change in price. This interactive tool lets you adjust the percentage change in price and quantity demanded to calculate PED, and visualises whether a product is price elastic or inelastic. The chart updates in real time — ideal for developing an intuitive feel for the concept before tackling exam questions. Covers Edexcel A-Level Business Theme 1.3 and A-Level Economics.

Uses Chart.js (cdnjs.cloudflare.com) for chart rendering. Requires an internet connection.

Frequently asked questions

What is the formula for price elasticity of demand?+
PED = % Change in Quantity Demanded ÷ % Change in Price. A PED greater than 1 (ignoring the sign) means demand is price elastic; less than 1 means it is price inelastic.
Why is PED usually negative?+
PED is usually negative because of the law of demand — as price rises, quantity demanded falls (and vice versa). In exams, the negative sign is often ignored and the absolute value is used to classify elasticity.

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