Price elasticity of demand is a term from Economics. It is defined as the absolute value of the percent change in the quantity of a product or service demanded by consumers resulting from a percentage change in the price, i.e., |(DQ/Q)/(DP/P)|.
The downloadable Excel workbook interactively illustrates the demand elasticity for a linear demand function. It also includes a graphical display of the profit function for a monopolist.
The top part of the worksheet allows one to customize the linear demand function. Do so by entering two data points each representing a price and a quantity.
The lower part of the worksheet is an interactive display of the market clearing price and quantity, the associated demand elasticity, and the monopolist's profit.
The worksheet contains additional information in the form of cell comments.