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 5%, the quantity demanded rises by 12.5%. Find the price elasticity of demand E.

%ΔP = −5%%ΔQ = +12.5%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 5%, the quantity demanded falls by 3%. Find the price elasticity of demand E.

%ΔP = +5%%ΔQ = −3%
E =
3.Medium
QPD10 000€25Q2​P2​ (+15%)ΔR = ?

A product sells 10 000 units per month at €25. Its price elasticity of demand is −0.3. The firm changes the price by +15%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €25Q1 = 10 000E = −0.3%ΔP = +15%
ΔR = €
4.Medium
QPD100€8.00110€6.50

When the price of a ticket changes from €8.00 to €6.50, weekly sales change from 100 to 110. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €8.00P2 = €6.50Q1 = 100Q2 = 110
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 500 − 10P, with P in euros. At which price P is total revenue as large as possible?

Q = 500 − 10P
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 120 − 4P, with P in euros. At which price P is the price elasticity of demand equal to −4?

Q = 120 − 4PE = −4
P = €

Answer key

  1. 1. E = −2.5
  2. 2. E = −0.6
  3. 3. ΔR = 24562 €
  4. 4. E = −0.4603
  5. 5. P = 25 €
  6. 6. P = 24 €

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