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Coefficient of Elasticity Calculator

Formula

The formula to calculate the Coefficient of Elasticity (E) is:

$\text{E} = \frac{\text{Q}}{\text{P}}$

Where:

Coefficient of Elasticity (E): Measures the responsiveness of the quantity demanded of a good to a change in its price.
Percentage Change in Quantity Demanded (Q): The percentage change in the quantity of the good demanded.
Percentage Change in Price (P): The percentage change in the price of the good.

Let's say the percentage change in quantity demanded (Q) is 10% and the percentage change in price (P) is 5%. Using the formula:

$\text{E} = \frac{10}{5} = 2$

So, the coefficient of elasticity is 2, indicating that demand is relatively elastic.