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
price+5%quantity demanded?%ΔQE = −0.4

The price elasticity of demand for a product is −0.4. The price is raised by 5%. By what percentage %ΔQ does the quantity demanded change?

E = −0.4%ΔP = +5%
%ΔQ = %
2.Easy
price−12%quantity demanded?%ΔQE = −2.5

The price elasticity of demand for a product is −2.5. The price is cut by 12%. By what percentage %ΔQ does the quantity demanded change?

E = −2.5%ΔP = −12%
%ΔQ = %
3.Medium
QPD800€10.00420€16.00

When the price of a ticket changes from €10.00 to €16.00, weekly sales change from 800 to 420. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €10.00P2 = €16.00Q1 = 800Q2 = 420
E =
4.Medium
QPD10 000€15Q2​P2​ (−10%)ΔR = ?

A product sells 10 000 units per month at €15. Its price elasticity of demand is −0.5. The firm changes the price by −10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €15Q1 = 10 000E = −0.5%ΔP = −10%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 600 − 10P, with P in euros. At which price P is the price elasticity of demand equal to −2?

Q = 600 − 10PE = −2
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 1500 − 50P, with P in euros. At which price P is total revenue as large as possible?

Q = 1500 − 50P
P = €

Answer key

  1. 1. %ΔQ = −2 %
  2. 2. %ΔQ = 30 %
  3. 3. E = −1.35
  4. 4. ΔR = −8250 €
  5. 5. P = 40 €
  6. 6. P = 15 €

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