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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
QPDQ1​P1​Q2​P2​

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

%ΔP = +8%%ΔQ = −20%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 10%, the quantity demanded falls by 15%. Find the price elasticity of demand E.

%ΔP = +10%%ΔQ = −15%
E =
3.Medium
QPD10 000€8Q2​P2​ (+20%)ΔR = ?

A product sells 10 000 units per month at €8. Its price elasticity of demand is −2.5. The firm changes the price by +20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €8Q1 = 10 000E = −2.5%ΔP = +20%
ΔR = €
4.Medium
QPD1000€12.001270€10.00

When the price of a ticket changes from €12.00 to €10.00, weekly sales change from 1000 to 1270. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €12.00P2 = €10.00Q1 = 1000Q2 = 1270
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 500 − 25P, with P in euros. At which price P is the price elasticity of demand equal to −4?

Q = 500 − 25PE = −4
P = €
6.Hard
QPD1 000€8Q = ?€6.00

Demand for a product has a constant price elasticity of −1.5, so Q = A·P^−1.5. At a price of €8, 1 000 units are sold. How many units Q are sold at a price of €6.00?

E = −1.5P1 = €8Q1 = 1 000P2 = €6.00
Q = units

Answer key

  1. 1. E = −2.5
  2. 2. E = −1.5
  3. 3. ΔR = −32000 €
  4. 4. E = −1.308
  5. 5. P = 16 €
  6. 6. Q = 1540 units

Full step-by-step solutions: practise this topic on examproblems.com.