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 = −2.5

A cinema sells 2 000 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 = 2 000E = −2.5%ΔP = +4%
Q = tickets
2.Easy
price+5%quantity demanded?%ΔQE = −0.3

The price elasticity of demand for a product is −0.3. The price is raised by 5%. By what percentage %ΔQ does the quantity demanded change?

E = −0.3%ΔP = +5%
%ΔQ = %
3.Medium
QPD500€8.00190€10.50

When the price of a ticket changes from €8.00 to €10.50, weekly sales change from 500 to 190. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €8.00P2 = €10.50Q1 = 500Q2 = 190
E =
4.Medium
QPD5 000€12Q2​P2​ (−10%)ΔR = ?

A product sells 5 000 units per month at €12. 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 = €12Q1 = 5 000E = −2.5%ΔP = −10%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 2500 − 50P, with P in euros. At which price P is total revenue as large as possible?

Q = 2500 − 50P
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 1000 − 10P, with P in euros. At which price P is total revenue as large as possible?

Q = 1000 − 10P
P = €

Answer key

  1. 1. Q = 1800 tickets
  2. 2. %ΔQ = −1.5 %
  3. 3. E = −3.325
  4. 4. ΔR = 7500 €
  5. 5. P = 25 €
  6. 6. P = 50 €

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