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 10%, the quantity demanded rises by 2%. Find the price elasticity of demand E.

%ΔP = −10%%ΔQ = +2%
E =
2.Easy
price+12%quantity demanded?%ΔQE = −1.5

The price elasticity of demand for a product is −1.5. The price is raised by 12%. By what percentage %ΔQ does the quantity demanded change?

E = −1.5%ΔP = +12%
%ΔQ = %
3.Medium
QPD200€15.00120€25.00

When the price of a ticket changes from €15.00 to €25.00, weekly sales change from 200 to 120. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €15.00P2 = €25.00Q1 = 200Q2 = 120
E =
4.Medium
QPD1200€4.001380€2.50

When the price of a ticket changes from €4.00 to €2.50, weekly sales change from 1200 to 1380. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €4.00P2 = €2.50Q1 = 1200Q2 = 1380
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 1600 − 20P, with P in euros. At which price P is the price elasticity of demand equal to −2?

Q = 1600 − 20PE = −2
P = €
6.Hard
QPD10 000€20Q = ?€14.00

Demand for a product has a constant price elasticity of −1.5, so Q = A·P^−1.5. At a price of €20, 10 000 units are sold. How many units Q are sold at a price of €14.00?

E = −1.5P1 = €20Q1 = 10 000P2 = €14.00
Q = units

Answer key

  1. 1. E = −0.2
  2. 2. %ΔQ = −18 %
  3. 3. E = −1
  4. 4. E = −0.3023
  5. 5. P = 53.33 €
  6. 6. Q = 17075 units

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