What is the price elasticity of supply?
Type two prices and the quantity supplied at each. The price elasticity of supply calculator applies the price elasticity of supply formula with the midpoint method and says whether supply is elastic, inelastic or unit elastic.
- Price elasticity of supply
- 3.52
The price elasticity of supply is 3.52: supply is elastic.
- Supply is
- elastic
- Elasticity with its sign
- 3.5217
- % change in quantity supplied
- 26.09%
- % change in price
- 7.41%
Price elasticity of supply: 3.52. The price elasticity of supply is 3.52: supply is elastic.
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Finds the price elasticity of supply by the midpoint method from two prices and the quantities supplied at each, and says whether supply is elastic, inelastic or unit elastic.
Example with the default inputs (Starting price $650.00, Quantity supplied at the starting price 10,000, New price $700.00, Quantity supplied at the new price 13,000): The price elasticity of supply is 3.52: supply is elastic.
Method: Elasticity = (% change in quantity supplied) ÷ (% change in price), where each % change = (new − old) ÷ ((new + old) ÷ 2) × 100 (the midpoint method), shown without its sign.
- The midpoint (arc) method, so going from A to B gives the same elasticity as going from B to A.
- Everything else that affects supply stays the same between the two points.
- Prices are at least $0.01; quantities are 0 or more, not both 0.
Worked examples
Each example is checked against the calculator on every build.
- Starting price $650.00, Quantity supplied at the starting price 10,000, New price $700.00, Quantity supplied at the new price 13,000 gives Price elasticity of supply 3.52, Supply is elastic, % change in quantity supplied 26.09%, % change in price 7.41%.Source: OpenStax, Principles of Economics 3e, section 5.1 Price Elasticity of Demand and Price Elasticity of Supply (midpoint method; from $650 and 10,000 units to $700 and 13,000 units: 26.1% ÷ 7.4% = 3.5, elastic; elastic above 1, unitary at 1, inelastic below 1), https://openstax.org/books/principles-economics-3e/pages/5-1-price-elasticity-of-demand-and-price-elasticity-of-supply (retrieved 2026-11-01) (26.1%, 7.4%, 3.5)
- Starting price $10.00, Quantity supplied at the starting price 100, New price $12.00, Quantity supplied at the new price 110 gives Price elasticity of supply 0.52, Supply is inelastic.Source: OpenStax, Principles of Economics 3e, section 5.1 Price Elasticity of Demand and Price Elasticity of Supply (midpoint method; from $650 and 10,000 units to $700 and 13,000 units: 26.1% ÷ 7.4% = 3.5, elastic; elastic above 1, unitary at 1, inelastic below 1), https://openstax.org/books/principles-economics-3e/pages/5-1-price-elasticity-of-demand-and-price-elasticity-of-supply (retrieved 2026-11-01)
- Starting price $8.00, Quantity supplied at the starting price 100, New price $10.00, Quantity supplied at the new price 125 gives Price elasticity of supply 1, Supply is unit elastic.Source: OpenStax, Principles of Economics 3e, section 5.1 Price Elasticity of Demand and Price Elasticity of Supply (midpoint method; from $650 and 10,000 units to $700 and 13,000 units: 26.1% ÷ 7.4% = 3.5, elastic; elastic above 1, unitary at 1, inelastic below 1), https://openstax.org/books/principles-economics-3e/pages/5-1-price-elasticity-of-demand-and-price-elasticity-of-supply (retrieved 2026-11-01)
- Starting price $3.00, Quantity supplied at the starting price 500, New price $4.00, Quantity supplied at the new price 500 gives Price elasticity of supply 0, Supply is perfectly inelastic.Source: OpenStax, Principles of Economics 3e, section 5.1 Price Elasticity of Demand and Price Elasticity of Supply (midpoint method; from $650 and 10,000 units to $700 and 13,000 units: 26.1% ÷ 7.4% = 3.5, elastic; elastic above 1, unitary at 1, inelastic below 1), https://openstax.org/books/principles-economics-3e/pages/5-1-price-elasticity-of-demand-and-price-elasticity-of-supply (retrieved 2026-11-01)
- Starting price $10.00, Quantity supplied at the starting price 100, New price $12.00, Quantity supplied at the new price 90 gives Price elasticity of supply 0.58, Elasticity with its sign −0.5789, Supply is inelastic.Source: OpenStax, Principles of Economics 3e, section 5.1 Price Elasticity of Demand and Price Elasticity of Supply (midpoint method; from $650 and 10,000 units to $700 and 13,000 units: 26.1% ÷ 7.4% = 3.5, elastic; elastic above 1, unitary at 1, inelastic below 1), https://openstax.org/books/principles-economics-3e/pages/5-1-price-elasticity-of-demand-and-price-elasticity-of-supply (retrieved 2026-11-01)
How it works
With prices P₁ and P₂, and quantities supplied Q₁ and Q₂:
- % change in quantity supplied = (Q₂ − Q₁) ÷ ((Q₁ + Q₂) ÷ 2) × 100
- % change in price = (P₂ − P₁) ÷ ((P₁ + P₂) ÷ 2) × 100
- Elasticity with its sign = % change in quantity supplied ÷ % change in price
- Price elasticity of supply = the absolute value of the signed elasticity
- Supply is perfectly inelastic at exactly 0, unit elastic at exactly 1, elastic above 1, and inelastic between 0 and 1.
Rules
- Prices are $0.01 to $1 trillion. Quantities are 0 to 10¹⁵.
- With two equal prices there is no answer, with the message "The two prices are the same. Elasticity needs a change in price."
- With both quantities 0 there is no answer, with the message "Both quantities are 0, so there is no average quantity to compare."
- Each % change is exact on the decimals as typed; the elasticity is an exact fraction, rounded once for display. Its sign and its class are read from that exact fraction.
- The elasticity shows up to 2 decimals, the signed value up to 4, and each percent change up to 2, rounded half up.
Worked examples by hand
$650 and 10,000 units to $700 and 13,000 units. % change in quantity = 3,000 ÷ 11,500 × 100 = 26.09%; % change in price = 50 ÷ 675 × 100 = 7.41%. Elasticity = 3.52: elastic.
$10 and 100 units to $12 and 110 units. 10 ÷ 105 × 100 = 9.52%; 2 ÷ 11 × 100 = 18.18%. Elasticity = 0.52: inelastic.
$8 and 100 units to $10 and 125 units. 25 ÷ 112.5 × 100 = 22.22%; 2 ÷ 9 × 100 = 22.22%. Elasticity = 1: unit elastic.
$3 to $4 with 500 units both times. Elasticity = 0: perfectly inelastic.
$10 and 100 units to $12 and 90 units. −10 ÷ 95 × 100 = −10.53%; 18.18%. Signed −0.5789, so the elasticity is 0.58: inelastic.
Other questions people ask
What is the price elasticity of supply?
It measures how the quantity supplied responds to a change in price: the percent change in quantity supplied divided by the percent change in price.
What is the price elasticity of supply formula?
Elasticity = % change in quantity supplied ÷ % change in price. By the midpoint method, each % change is (new − old) ÷ ((new + old) ÷ 2) × 100.
Can you show a worked example?
OpenStax uses an apartment at $650 with 10,000 units supplied, and at $700 with 13,000 units. The % change in quantity is 3,000 ÷ 11,500 = 26.1%, the % change in price is 50 ÷ 675 = 7.4%, and the elasticity is 3.5, so supply is elastic over this range.
What do elastic and inelastic supply mean?
Elastic supply (above 1) responds strongly: quantity changes by a larger percent than price. Inelastic supply (below 1) responds weakly. At exactly 1 it is unit elastic, and at 0 quantity does not change at all.
Why does the answer have no minus sign?
OpenStax reads elasticity as an absolute value. The signed value is shown too, so you can see when quantity supplied moved against the price.
What does a negative signed value mean?
Quantity supplied fell while the price rose, or rose while the price fell. Check your inputs, or look for something else that changed between the two points.