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 25%, the quantity demanded falls by 5%. Find the price elasticity of demand E.

%ΔP = +25%%ΔQ = −5%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 15%, the quantity demanded rises by 12%. Find the price elasticity of demand E.

%ΔP = −15%%ΔQ = +12%
E =
3.Medium
QPD4 000€10Q2​P2​ (+10%)ΔR = ?

A product sells 4 000 units per month at €10. Its price elasticity of demand is −0.6. The firm changes the price by +10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €10Q1 = 4 000E = −0.6%ΔP = +10%
ΔR = €
4.Medium
QPD2 000€4Q2​P2​ (+15%)ΔR = ?

A product sells 2 000 units per month at €4. Its price elasticity of demand is −2.5. The firm changes the price by +15%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €4Q1 = 2 000E = −2.5%ΔP = +15%
ΔR = €
5.Hard
QPD1 000€10Q = ?€7.50

Demand for a product has a constant price elasticity of −1.2, so Q = A·P^−1.2. At a price of €10, 1 000 units are sold. How many units Q are sold at a price of €7.50?

E = −1.2P1 = €10Q1 = 1 000P2 = €7.50
Q = units
6.Hard
QPDQP = ?

The demand for a product is Q = 400 − 10P, with P in euros. At which price P is the price elasticity of demand equal to −1.5?

Q = 400 − 10PE = −1.5
P = €

Answer key

  1. 1. E = −0.2
  2. 2. E = −0.8
  3. 3. ΔR = 1360 €
  4. 4. ΔR = −2250 €
  5. 5. Q = 1412 units
  6. 6. P = 24 €

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