Last month, Rick's Bike Shop, Inc. increased the price on the 24 ounce can of bearing grease by 1%. In response, sales dropped by 4%. Calculate the point price elasticity of demand for bearing grease.

Price elasticity of demand = % change in quantity demanded / % change in price

Price elasticity of demand = 4% / 1%

Price elasticity of demand = 4

The bearing grease having a PED of 4 means that this elastic and consumers may find substitute or defer buying bearing grease until the price decreases again.