Calculating PED Step by Step — Price Elasticity of Demand (PED) | IGCSE Economics

Exam Frequency Analysis

Past paper frequency (2018 to 2024)

This topic accounts for approximately 15% of your exam marks.

increasing

Very High

Increasing15%

PED definition, formula, calculation, and revenue application appear regularly; trending upward since 2021.

A typical 4-mark "calculate PED" question rewards a clear three-step method plus a one-line interpretation.

Step 1. Calculate the percentage change in quantity demanded.

Step 2. Calculate the percentage change in price.

Step 3. Divide: PED = %ΔQd ÷ %ΔP.

Step 4. Interpret the result: say whether demand is elastic (|PED| > 1) or inelastic (|PED| < 1), and what that means for total revenue.