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

%ΔP = +8%%ΔQ = −12%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 5%, the quantity demanded rises by 12.5%. Find the price elasticity of demand E.

%ΔP = −5%%ΔQ = +12.5%
E =
3.Medium
QPD1000€4.001200€3.50

When the price of a ticket changes from €4.00 to €3.50, weekly sales change from 1000 to 1200. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €4.00P2 = €3.50Q1 = 1000Q2 = 1200
E =
4.Medium
QPD1 000€10Q2​P2​ (−10%)ΔR = ?

A product sells 1 000 units per month at €10. Its price elasticity of demand is −2.5. The firm changes the price by −10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €10Q1 = 1 000E = −2.5%ΔP = −10%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 500 − 5P, with P in euros. At which price P is total revenue as large as possible?

Q = 500 − 5P
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 300 − 10P, with P in euros. At which price P is the price elasticity of demand equal to −0.25?

Q = 300 − 10PE = −0.25
P = €

Answer key

  1. 1. E = −1.5
  2. 2. E = −2.5
  3. 3. E = −1.364
  4. 4. ΔR = 1250 €
  5. 5. P = 50 €
  6. 6. P = 6 €

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