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−5%tickets per week?500 → QE = −1.2

A cinema sells 500 tickets per week. The price elasticity of demand is −1.2. If the ticket price is cut by 5%, how many tickets Q will it sell per week?

Q1 = 500E = −1.2%ΔP = −5%
Q = tickets
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 25%, the quantity demanded rises by 15%. Find the price elasticity of demand E.

%ΔP = −25%%ΔQ = +15%
E =
3.Medium
QPD1200€25.001120€29.00

When the price of a ticket changes from €25.00 to €29.00, weekly sales change from 1200 to 1120. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €25.00P2 = €29.00Q1 = 1200Q2 = 1120
E =
4.Medium
QPD200€10.00140€14.00

When the price of a ticket changes from €10.00 to €14.00, weekly sales change from 200 to 140. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €10.00P2 = €14.00Q1 = 200Q2 = 140
E =
5.Hard
QPDQ€4

The demand for a product is Q = 1000 − 50P, with P in euros. Find the price elasticity of demand E at a price of €4.

Q = 1000 − 50PP = €4
E =
6.Hard
QPDQP = ?

The demand for a product is Q = 1500 − 25P, with P in euros. At which price P is total revenue as large as possible?

Q = 1500 − 25P
P = €

Answer key

  1. 1. Q = 530 tickets
  2. 2. E = −0.6
  3. 3. E = −0.4655
  4. 4. E = −1.059
  5. 5. E = −0.25
  6. 6. P = 30 €

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