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 falls by 12%, the quantity demanded rises by 9.6%. Find the price elasticity of demand E.

%ΔP = −12%%ΔQ = +9.6%
E =
2.Easy
ticket price−4%tickets per week?5 000 → QE = −0.5

A cinema sells 5 000 tickets per week. The price elasticity of demand is −0.5. If the ticket price is cut by 4%, how many tickets Q will it sell per week?

Q1 = 5 000E = −0.5%ΔP = −4%
Q = tickets
3.Medium
QPD5 000€12Q2​P2​ (−5%)ΔR = ?

A product sells 5 000 units per month at €12. Its price elasticity of demand is −0.3. The firm changes the price by −5%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €12Q1 = 5 000E = −0.3%ΔP = −5%
ΔR = €
4.Medium
QPD1 000€20Q2​P2​ (+5%)ΔR = ?

A product sells 1 000 units per month at €20. Its price elasticity of demand is −0.3. The firm changes the price by +5%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €20Q1 = 1 000E = −0.3%ΔP = +5%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 160 − 2P, with P in euros. At which price P is total revenue as large as possible?

Q = 160 − 2P
P = €
6.Hard
QPD7200€48.00

The (inverse) demand for a product is P = 120 − 0.01Q, with P in euros. Find the price elasticity of demand E when 7 200 units are sold.

P = 120 − 0.01QQ = 7 200
E =

Answer key

  1. 1. E = −0.8
  2. 2. Q = 5100 tickets
  3. 3. ΔR = −2145 €
  4. 4. ΔR = 685 €
  5. 5. P = 40 €
  6. 6. E = −0.6667

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