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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Name: ____________________   Date: ____________

1.Easy
price−5%quantity demanded?%ΔQE = −0.8

The price elasticity of demand for a product is −0.8. The price is cut by 5%. By what percentage %ΔQ does the quantity demanded change?

E = −0.8%ΔP = −5%
%ΔQ = %
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 15%, the quantity demanded rises by 9%. Find the price elasticity of demand E.

%ΔP = −15%%ΔQ = +9%
E =
3.Medium
QPD1200€4.002100€2.50

When the price of a ticket changes from €4.00 to €2.50, weekly sales change from 1200 to 2100. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €4.00P2 = €2.50Q1 = 1200Q2 = 2100
E =
4.Medium
QPD2 000€20Q2​P2​ (+10%)ΔR = ?

A product sells 2 000 units per month at €20. Its price elasticity of demand is −0.4. The firm changes the price by +10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €20Q1 = 2 000E = −0.4%ΔP = +10%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 500 − 5P, with P in euros. At which price P is the price elasticity of demand equal to −1.5?

Q = 500 − 5PE = −1.5
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 1250 − 25P, with P in euros. At which price P is total revenue as large as possible?

Q = 1250 − 25P
P = €

Answer key

  1. 1. %ΔQ = 4 %
  2. 2. E = −0.6
  3. 3. E = −1.182
  4. 4. ΔR = 2240 €
  5. 5. P = 60 €
  6. 6. P = 25 €

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