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−4%tickets per week?2 000 → QE = −0.5

A cinema sells 2 000 tickets per week. The price elasticity of demand is −0.5. If the ticket price is cut by 4%, how many tickets Q will it sell per week?

Q1 = 2 000E = −0.5%ΔP = −4%
Q = tickets
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 8%, the quantity demanded rises by 12%. Find the price elasticity of demand E.

%ΔP = −8%%ΔQ = +12%
E =
3.Medium
QPD1 000€25Q2​P2​ (+10%)ΔR = ?

A product sells 1 000 units per month at €25. Its price elasticity of demand is −0.6. The firm changes the price by +10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €25Q1 = 1 000E = −0.6%ΔP = +10%
ΔR = €
4.Medium
QPD500€8.00440€8.50

When the price of a ticket changes from €8.00 to €8.50, weekly sales change from 500 to 440. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €8.00P2 = €8.50Q1 = 500Q2 = 440
E =
5.Hard
QPDQ€28

The demand for a product is Q = 2000 − 50P, with P in euros. Find the price elasticity of demand E at a price of €28.

Q = 2000 − 50PP = €28
E =
6.Hard
QPD120€40.00

The (inverse) demand for a product is P = 100 − 0.5Q, with P in euros. Find the price elasticity of demand E when 120 units are sold.

P = 100 − 0.5QQ = 120
E =

Answer key

  1. 1. Q = 2040 tickets
  2. 2. E = −1.5
  3. 3. ΔR = 850 €
  4. 4. E = −2.106
  5. 5. E = −2.333
  6. 6. E = −0.6667

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