Price elasticity of demand worksheet with answers

Free printable Price elasticity of demand worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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1.Easy
price+5%quantity demanded?%ΔQE = −3

The price elasticity of demand for a product is −3. The price is raised by 5%. By what percentage %ΔQ does the quantity demanded change?

E = −3%ΔP = +5%
%ΔQ = %
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 8%, the quantity demanded rises by 20%. Find the price elasticity of demand E.

%ΔP = −8%%ΔQ = +20%
E =
3.Medium
QPD2 000€5Q2​P2​ (+20%)ΔR = ?

A product sells 2 000 units per month at €5. Its price elasticity of demand is −0.4. The firm changes the price by +20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €5Q1 = 2 000E = −0.4%ΔP = +20%
ΔR = €
4.Medium
QPD100€20.0070€30.00

When the price of a ticket changes from €20.00 to €30.00, weekly sales change from 100 to 70. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €30.00Q1 = 100Q2 = 70
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 800 − 20P, with P in euros. At which price P is total revenue as large as possible?

Q = 800 − 20P
P = €
6.Hard
QPDQ€6

The demand for a product is Q = 100 − 5P, with P in euros. Find the price elasticity of demand E at a price of €6.

Q = 100 − 5PP = €6
E =

Answer key

  1. 1. %ΔQ = −15 %
  2. 2. E = −2.5
  3. 3. ΔR = 1040 €
  4. 4. E = −0.8824
  5. 5. P = 20 €
  6. 6. E = −0.4286

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