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?400 → QE = −2.5

A cinema sells 400 tickets per week. The price elasticity of demand is −2.5. If the ticket price rises by 4%, how many tickets Q will it sell per week?

Q1 = 400E = −2.5%ΔP = +4%
Q = tickets
2.Easy
price+2%quantity demanded?%ΔQE = −0.8

The price elasticity of demand for a product is −0.8. The price is raised by 2%. By what percentage %ΔQ does the quantity demanded change?

E = −0.8%ΔP = +2%
%ΔQ = %
3.Medium
QPD200€40.00210€38.00

When the price of a ticket changes from €40.00 to €38.00, weekly sales change from 200 to 210. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €40.00P2 = €38.00Q1 = 200Q2 = 210
E =
4.Medium
QPD1 000€15Q2​P2​ (+20%)ΔR = ?

A product sells 1 000 units per month at €15. Its price elasticity of demand is −1.5. The firm changes the price by +20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €15Q1 = 1 000E = −1.5%ΔP = +20%
ΔR = €
5.Hard
QPD8 000€10Q = ?€12.50

Demand for a product has a constant price elasticity of −1.5, so Q = A·P^−1.5. At a price of €10, 8 000 units are sold. How many units Q are sold at a price of €12.50?

E = −1.5P1 = €10Q1 = 8 000P2 = €12.50
Q = units
6.Hard
QPDQ€18

The demand for a product is Q = 3000 − 50P, with P in euros. Find the price elasticity of demand E at a price of €18.

Q = 3000 − 50PP = €18
E =

Answer key

  1. 1. Q = 360 tickets
  2. 2. %ΔQ = −1.6 %
  3. 3. E = −0.9512
  4. 4. ΔR = −2400 €
  5. 5. Q = 5724 units
  6. 6. E = −0.4286

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