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 15%, the quantity demanded falls by 30%. Find the price elasticity of demand E.

%ΔP = +15%%ΔQ = −30%
E =
2.Easy
price+12%quantity demanded?%ΔQE = −0.3

The price elasticity of demand for a product is −0.3. The price is raised by 12%. By what percentage %ΔQ does the quantity demanded change?

E = −0.3%ΔP = +12%
%ΔQ = %
3.Medium
QPD1 000€8Q2​P2​ (−10%)ΔR = ?

A product sells 1 000 units per month at €8. 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 = €8Q1 = 1 000E = −2.5%ΔP = −10%
ΔR = €
4.Medium
QPD2 000€8Q2​P2​ (+20%)ΔR = ?

A product sells 2 000 units per month at €8. Its price elasticity of demand is −0.5. The firm changes the price by +20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €8Q1 = 2 000E = −0.5%ΔP = +20%
ΔR = €
5.Hard
QPDQ€8

The demand for a product is Q = 200 − 5P, with P in euros. Find the price elasticity of demand E at a price of €8.

Q = 200 − 5PP = €8
E =
6.Hard
QPDQP = ?

The demand for a product is Q = 120 − 4P, with P in euros. At which price P is total revenue as large as possible?

Q = 120 − 4P
P = €

Answer key

  1. 1. E = −2
  2. 2. %ΔQ = −3.6 %
  3. 3. ΔR = 1000 €
  4. 4. ΔR = 1280 €
  5. 5. E = −0.25
  6. 6. P = 15 €

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