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 8%, the quantity demanded falls by 3.2%. Find the price elasticity of demand E.

%ΔP = +8%%ΔQ = −3.2%
E =
2.Easy
ticket price+12%tickets per week?2 000 → QE = −1.5

A cinema sells 2 000 tickets per week. The price elasticity of demand is −1.5. If the ticket price rises by 12%, how many tickets Q will it sell per week?

Q1 = 2 000E = −1.5%ΔP = +12%
Q = tickets
3.Medium
QPD400€40.00350€46.00

When the price of a ticket changes from €40.00 to €46.00, weekly sales change from 400 to 350. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €40.00P2 = €46.00Q1 = 400Q2 = 350
E =
4.Medium
QPD4 000€4Q2​P2​ (−10%)ΔR = ?

A product sells 4 000 units per month at €4. Its price elasticity of demand is −1.5. The firm changes the price by −10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €4Q1 = 4 000E = −1.5%ΔP = −10%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 200 − 10P, with P in euros. At which price P is total revenue as large as possible?

Q = 200 − 10P
P = €
6.Hard
QPD280€12.00

The (inverse) demand for a product is P = 40 − 0.1Q, with P in euros. Find the price elasticity of demand E when 280 units are sold.

P = 40 − 0.1QQ = 280
E =

Answer key

  1. 1. E = −0.4
  2. 2. Q = 1640 tickets
  3. 3. E = −0.9556
  4. 4. ΔR = 560 €
  5. 5. P = 10 €
  6. 6. E = −0.4286

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