Measure how supply responds to a price change.
Please do not make financial decisions based on these results.
What is the Price Elasticity of Supply Calculator?
Measure how supply responds to a price change. To use the Price Elasticity of Supply Calculator, enter old price, new price, old quantity supplied, new quantity supplied; it returns price elasticity of supply, and shows them instantly as you type.
Reading the economy with formulas
Output first: use the GDP calculator for the expenditure approach and the Real GDP Calculator to remove inflation. Prices next: the CPI inflation calculator and Real Interest Rate Calculator show the true return on money.
For policy, the Taylor Rule Calculator suggests a rate from inflation and the output gap, and the Spending Multiplier Calculator shows how a change in spending ripples through GDP.
- Labor. Unemployment, participation, the natural rate and Okun’s law describe the job market.
- Money. Money multiplier, reserve ratio, money supply and velocity explain monetary conditions.
- Trade and currency. PPP, interest rate parity, cross rates and carry trades link currencies and prices.
How to use the Price Elasticity of Supply Calculator
- Enter your numbers. Start with Old price ($), New price ($), Old quantity supplied, then fill in New quantity supplied. Use real figures from your own records where you can. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Price elasticity of supply. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Price Elasticity of Supply Calculator using the default values shown in the calculator above:
Inputs
| Old price ($) | 10 |
|---|---|
| New price ($) | 12 |
| Old quantity supplied | 500 |
| New quantity supplied | 620 |
Results
| Price elasticity of supply | 1.18 |
|---|
With these inputs the calculator returns Price elasticity of supply: 1.18. Change any value in the calculator to see how the result moves.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What does elastic supply mean?
Producers can raise output quickly when prices rise.
What is the difference between nominal and real GDP?
Nominal GDP uses current prices; real GDP removes price changes using a deflator so output can be compared over time.
What is the spending multiplier?
It is 1 divided by one minus the marginal propensity to consume, so an MPC of 0.8 gives a multiplier of 5.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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