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
QPDQ1​P1​Q2​P2​

When the price of a product rises by 12%, the quantity demanded falls by 6%. Find the price elasticity of demand E.

%ΔP = +12%%ΔQ = −6%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 12%, the quantity demanded rises by 30%. Find the price elasticity of demand E.

%ΔP = −12%%ΔQ = +30%
E =
3.Medium
QPD2 500€8Q2​P2​ (+5%)ΔR = ?

A product sells 2 500 units per month at €8. Its price elasticity of demand is −0.4. The firm changes the price by +5%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €8Q1 = 2 500E = −0.4%ΔP = +5%
ΔR = €
4.Medium
QPD1200€20.001420€14.00

When the price of a ticket changes from €20.00 to €14.00, weekly sales change from 1200 to 1420. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €14.00Q1 = 1200Q2 = 1420
E =
5.Hard
QPDQ€80

The demand for a product is Q = 5000 − 50P, with P in euros. Find the price elasticity of demand E at a price of €80.

Q = 5000 − 50PP = €80
E =
6.Hard
QPDQP = ?

The demand for a product is Q = 5000 − 50P, with P in euros. At which price P is the price elasticity of demand equal to −4?

Q = 5000 − 50PE = −4
P = €

Answer key

  1. 1. E = −0.5
  2. 2. E = −2.5
  3. 3. ΔR = 580 €
  4. 4. E = −0.4758
  5. 5. E = −4
  6. 6. P = 80 €

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