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 12%, the quantity demanded falls by 24%. Find the price elasticity of demand E.

%ΔP = +12%%ΔQ = −24%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 5%, the quantity demanded falls by 10%. Find the price elasticity of demand E.

%ΔP = +5%%ΔQ = −10%
E =
3.Medium
QPD2 000€15Q2​P2​ (+15%)ΔR = ?

A product sells 2 000 units per month at €15. Its price elasticity of demand is −2.5. The firm changes the price by +15%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €15Q1 = 2 000E = −2.5%ΔP = +15%
ΔR = €
4.Medium
QPD1200€12.001680€6.00

When the price of a ticket changes from €12.00 to €6.00, weekly sales change from 1200 to 1680. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €12.00P2 = €6.00Q1 = 1200Q2 = 1680
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 200 − 5P, with P in euros. At which price P is total revenue as large as possible?

Q = 200 − 5P
P = €
6.Hard
QPDQ€8

The demand for a product is Q = 200 − 10P, with P in euros. Find the price elasticity of demand E at a price of €8.

Q = 200 − 10PP = €8
E =

Answer key

  1. 1. E = −2
  2. 2. E = −2
  3. 3. ΔR = −8438 €
  4. 4. E = −0.5
  5. 5. P = 20 €
  6. 6. E = −0.6667

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