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
ticket price−15%tickets per week?1 000 → QE = −2.5

A cinema sells 1 000 tickets per week. The price elasticity of demand is −2.5. If the ticket price is cut by 15%, how many tickets Q will it sell per week?

Q1 = 1 000E = −2.5%ΔP = −15%
Q = tickets
2.Easy
ticket price+4%tickets per week?1 200 → QE = −0.8

A cinema sells 1 200 tickets per week. The price elasticity of demand is −0.8. If the ticket price rises by 4%, how many tickets Q will it sell per week?

Q1 = 1 200E = −0.8%ΔP = +4%
Q = tickets
3.Medium
QPD800€20.00420€26.00

When the price of a ticket changes from €20.00 to €26.00, weekly sales change from 800 to 420. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €26.00Q1 = 800Q2 = 420
E =
4.Medium
QPD1000€40.00700€50.00

When the price of a ticket changes from €40.00 to €50.00, weekly sales change from 1000 to 700. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €40.00P2 = €50.00Q1 = 1000Q2 = 700
E =
5.Hard
QPD8 000€20Q = ?€15.00

Demand for a product has a constant price elasticity of −2.5, so Q = A·P^−2.5. At a price of €20, 8 000 units are sold. How many units Q are sold at a price of €15.00?

E = −2.5P1 = €20Q1 = 8 000P2 = €15.00
Q = units
6.Hard
QPDQ€40

The demand for a product is Q = 2500 − 25P, with P in euros. Find the price elasticity of demand E at a price of €40.

Q = 2500 − 25PP = €40
E =

Answer key

  1. 1. Q = 1375 tickets
  2. 2. Q = 1162 tickets
  3. 3. E = −2.388
  4. 4. E = −1.588
  5. 5. Q = 16422 units
  6. 6. E = −0.6667

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