The formula for calculating price elasticity of demand coefficient is

The formula for calculating price elasticity of demand coefficient is the percentage change in quantity demanded divided by the percentage change in price. This formula helps us to determine the sensitivity of demand for a particular good or service to changes in its price. If the coefficient is greater than 1, demand is considered elastic, meaning that a change in price will have a larger effect on the quantity demanded. If the coefficient is less than 1, demand is considered inelastic, meaning that a change in price will have a smaller effect on the quantity demanded. If the coefficient is equal to 1, demand is considered unit elastic, meaning that a change in price will have an equal effect on the quantity demanded.