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## Price Elasticity of Demand

Price elasticity of demand measures the responsiveness of the quantity of a good or service that is demanded to a change in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. The formula is:

Price elasticity of demand = % change in quantity demanded / % change in price

If the quantity demanded of a good or service decreases significantly in response to a small increase in price, then the demand is said to be price elastic (i.e. responsive to price changes). PED> (-) 1

If the quantity demanded only decreases slightly in response to a large increase in price, then the demand is said to be price inelastic (i.e. not very responsive to price changes). (PED < (-) 1

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2nd November 2023

Study Notes

• ### 1.2.3. Price Elasticity of Demand (Edexcel A-Level Economics Teaching PowerPoint)

Teaching PowerPoints

• ### 4.1.3.2 Price Elasticity of Demand (AQA A-Level Economics Teaching PowerPoint)

Teaching PowerPoints

Study Notes

• ### Monopoly - Eli Lilly cuts prices of insulin by up to 70%

1st March 2023

• ### Price Elasticity of Demand - Tesla cuts prices again to lift sales

8th March 2023

• ### Price elasticity of demand - Tesla cuts prices by up to a fifth to boost demand

15th January 2023

Topic Videos

Topic Videos

• ### Elasticity of Demand Revision Resources

3rd December 2022

• ### Price Elasticity of Demand - Glastonbury raises ticket prices to £340

18th October 2022

• ### Demand and Supply in Action: Sony raises prices of PlayStations in the UK by 6%

25th August 2022

• ### Shifts in Demand and Supply - Fish and Chip Shops Facing Closure

24th August 2022

• ### Burgernomics - McDonald's raises cheeseburger prices by 20%

29th July 2022

• ### Amazon Raises Prime Prices in the UK and Europe

27th July 2022

• ### Unilever lifts their advertising spending to reinforce brand loyalty

26th July 2022

• ### The heatwave and demand for bottled water

12th July 2022

Topic Videos

Topic Videos

Topic Videos

• ### Price elasticity of demand - Peloton cuts price of bike as sales growth slows

27th August 2021

• ### Elasticity of Demand and Supply - Selection of Revision MCQs

Practice Exam Questions

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2nd December 2016

• ### Economics of NHS Car Parking Charges

28th December 2016

• ### Price elasticity of demand (Revision Presentation)

Teaching PowerPoints

• ### Determinants of Demand (Revision Presentation)

Teaching PowerPoints

• ### How Markets Work - Price Elasticity of Demand

Teaching PowerPoints

Study Notes

Topic Videos

Topic Videos

Topic Videos

Topic Videos

• ### Elasticities of Demand MCQ Revision Question

Practice Exam Questions

Exam Support

Study Notes

Topic Videos

Topic Videos

• ### Evaluating Subsidies (Online Lesson)

Online Lessons

• ### Introduction to Economics and the Operations of Markets - take the Yes/No challenge

Quizzes & Activities

• ### Price and Income Elasticities - "Match Up" Activity

Quizzes & Activities

Topic Videos

Topic Videos

• ### Demand and Supply - 60 Second Challenge (Knowledge Retrieval Activity)

Quizzes & Activities

Topic Videos

Topic Videos

• ### Oligopoly - Why is insulin so expensive?

14th February 2019

Study Notes

Study Notes

• ### Elasticity of Demand and Supply - Know Your Stuff! (Quizlet Activity)

Quizzes & Activities

Topic Videos

Study Notes

Study Notes

Study Notes

Study Notes

Study Notes

• ### Elasticity and Tax Incidence (Chains of Reasoning Revision Video)

Practice Exam Questions

• ### St Valentine's price discrimination

9th February 2018

Topic Videos

• ### Latte Levy - a surcharge for use of takeaway paper cups

5th January 2018

Topic Videos

• ### Premium demand lifts whisky sales

30th October 2017

• ### Elasticity of Demand in Action: Sugary Drink Demand and Higher Prices

17th October 2017

• ### Price Elasticity of Demand and Student Accommodation

14th September 2017

• ### Elasticity of Demand & Supply Revision Quiz

Quizzes & Activities

Topic Videos

• ### Elasticity and Total Revenue (MCQ Revision Questions)

Practice Exam Questions

• ### ​Vanilla Ice Cream and Elasticity

15th April 2016

• ### Price hike in vanilla from Madagascar due to changes in conditions of supply

30th March 2016

• ### Snacks on a plane

8th March 2016

• ### Britain's biscuit shortage

6th March 2016

• ### Stellios opens his easyFoodstore with 25p offers!

2nd February 2016

• ### Engaging Lesson Starter - Conveyor Belt Memory Game

29th January 2016

• ### Is Christmas getting cheaper? Inflation, elasticity and austerity

14th December 2015

• ### Coca Cola enters the milk market

26th November 2014

• ### Uber and Surge Pricing

24th December 2014

• ### Why is room service so expensive?

1st April 2015

• ### Uber Surge Pricing and the Tube Strike

9th July 2015

• ### Fermenting Nicely - The Rise of Microbreweries

31st August 2015

• ### Why Uber's surge pricing is good for you, according to Uber

20th September 2015

• ### A ‘nudge’ to reduce plastic bag use

4th October 2015

• ### Rising Football Ticket Prices

1st November 2015

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