Price Elasticity of Demand Simulator

Price Elasticity of Demand measures how responsive quantity demanded is to a change in price. You must know the total consumer outlay method to classify price elasticity of demand in a given situation.

If price goes up and consumer outlay goes up, it is INELASTIC. If total outlay goes down, it is ELASTIC. If total outlay remains the same, it is UNIT ELASTIC.

Original

New Price

Price

Quantity demanded

Consumer outlay



Total outlay increased, therefore INELASTIC.