Understanding Price Elasticity of Demand

This interactive lesson explores how the Price Elasticity of Demand (PED) changes along a demand curve. The lesson uses the percentage change formula shown below to calculate elasticity.

Price Elasticity of Demand = Percentage Change in Quantity Demanded ÷ Percentage Change in Price

Point A represents the old (initial) point and Point B represents the new point. Move the points to see how price, quantity demanded, percentage changes, and elasticity update in real time.

How to Use the Playground

• Drag Point A and Point B along the demand curve.
• Observe how the Price Elasticity of Demand changes in real time.
• Compare elasticity at different locations on the demand curve.