Use the formula: Elasticity = (% change in quantity) / (% change in price)
Find the initial quantity and new quantity
Find the initial price and new price
Calculate the change in quantity: New quantity – Initial quantity
Calculate the change in price: New price – Initial price
Calculate percentage change in quantity: (Change in quantity / Initial quantity) × 100
Calculate percentage change in price: (Change in price / Initial price) × 100
Divide the percentage change in quantity by the percentage change in price
Interpret the result: elasticity greater than 1 = elastic
Interpret the result: elasticity less than 1 = inelastic
Interpret the result: elasticity equal to 1 = unit elastic