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 20%, the quantity demanded falls by 8%. Find the price elasticity of demand E.

%ΔP = +20%%ΔQ = −8%
E =
2.Easy
price−4%quantity demanded?%ΔQE = −0.5

The price elasticity of demand for a product is −0.5. The price is cut by 4%. By what percentage %ΔQ does the quantity demanded change?

E = −0.5%ΔP = −4%
%ΔQ = %
3.Medium
QPD1 000€4Q2​P2​ (−10%)ΔR = ?

A product sells 1 000 units per month at €4. Its price elasticity of demand is −0.3. The firm changes the price by −10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €4Q1 = 1 000E = −0.3%ΔP = −10%
ΔR = €
4.Medium
QPD100€25.0080€31.00

When the price of a ticket changes from €25.00 to €31.00, weekly sales change from 100 to 80. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €25.00P2 = €31.00Q1 = 100Q2 = 80
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 800 − 20P, with P in euros. At which price P is the price elasticity of demand equal to −1.5?

Q = 800 − 20PE = −1.5
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 800 − 20P, with P in euros. At which price P is the price elasticity of demand equal to −2?

Q = 800 − 20PE = −2
P = €

Answer key

  1. 1. E = −0.4
  2. 2. %ΔQ = 2 %
  3. 3. ΔR = −292 €
  4. 4. E = −1.037
  5. 5. P = 24 €
  6. 6. P = 26.67 €

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