... Elasticity = ? % change in a dependent variable While elasticity can be calculated and used for any two related variables there are four basic Coefficients of elasticity used in principles of economics OWN PRICE ELASTICITY OF DEMAND This is a measure of the percentage change in the quantity demanded "caused" by a percentage change in price. Because the demand function is an inverse relationship between price and quantity the coefficient of price elasticity will always be negative: change in price change in Quantity Demanded PED = %? in Demand %? in Price The price elasticity of demand (PED) is the relation between the change in the quantity demanded of a good and the change in the price of that good. The PED for oil is very low, since a major increase in price is required for the demand of oil to be significantly, moved. This situation is caused by consumer, such as plastic ...

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