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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Name: ____________________   Date: ____________

1.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 5%, the quantity demanded rises by 4%. Find the price elasticity of demand E.

%ΔP = −5%%ΔQ = +4%
E =
2.Easy
price+10%quantity demanded?%ΔQE = −1.5

The price elasticity of demand for a product is −1.5. The price is raised by 10%. By what percentage %ΔQ does the quantity demanded change?

E = −1.5%ΔP = +10%
%ΔQ = %
3.Medium
QPD2 000€12Q2​P2​ (+10%)ΔR = ?

A product sells 2 000 units per month at €12. Its price elasticity of demand is −0.4. The firm changes the price by +10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €12Q1 = 2 000E = −0.4%ΔP = +10%
ΔR = €
4.Medium
QPD100€20.00110€14.00

When the price of a ticket changes from €20.00 to €14.00, weekly sales change from 100 to 110. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €14.00Q1 = 100Q2 = 110
E =
5.Hard
QPDQ€15

The demand for a product is Q = 1250 − 25P, with P in euros. Find the price elasticity of demand E at a price of €15.

Q = 1250 − 25PP = €15
E =
6.Hard
QPDQP = ?

The demand for a product is Q = 250 − 5P, with P in euros. At which price P is total revenue as large as possible?

Q = 250 − 5P
P = €

Answer key

  1. 1. E = −0.8
  2. 2. %ΔQ = −15 %
  3. 3. ΔR = 1344 €
  4. 4. E = −0.2698
  5. 5. E = −0.4286
  6. 6. P = 25 €

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