Note: This tool assumes that you are familiar with the concept of price elasticity of demand. If you are not, refer to your textbook before using this tool. 
 
 
 
 
 

You have three sliders to control. The two quantity sliders allow you to choose two different points on the demand curve. The tool will calculate the total revenue associated with each of the two points, and it will calculate the price elasticity of demand over the segment of demand defined by the sliders. This information will be displayed in the table at the bottom of the screen. The tool uses the arc elasticity formula to determine elasticity, which is: 

((q1-q0)/(q0+q1)/2)/((p1-p0)/(p0+p1)/2) 

Move the sliders around and see how elasticity changes. You should also be able to discover a relationship between elasticity and total revenue. 

You can also change the slope of the demand curve using the slope slider. Try changing this slider and see what effect, if any, this has on price elasticity of demand over different segments of the demand curve. 

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