PEoD = QNew-QOld/(QNew+Qold)
QNew and PNew
stands for new quantity and price respectively.
The above table shows the Calculation of Price Elasticity for Wheat the effect of change in Price on Customer's buying behavior
The following table shows the elasticity for some common products
Negative price elasticity shows that when the price increases, demand decreases. The above table shows that the customer is more sensitive to Beef than Wheat. An Offer on highly sensitive product can induce the customer to buy more.
Identifying price sensitivity of products/category , the subtitute products and its sales over the period would help to get the right price / product for promotions