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 25%, the quantity demanded falls by 5%. Find the price elasticity of demand E.

%ΔP = +25%%ΔQ = −5%
E =
2.Easy
ticket price−15%tickets per week?400 → QE = −0.8

A cinema sells 400 tickets per week. The price elasticity of demand is −0.8. If the ticket price is cut by 15%, how many tickets Q will it sell per week?

Q1 = 400E = −0.8%ΔP = −15%
Q = tickets
3.Medium
QPD500€20.00200€26.00

When the price of a ticket changes from €20.00 to €26.00, weekly sales change from 500 to 200. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €26.00Q1 = 500Q2 = 200
E =
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
QPD1 000€5Q = ?€4.00

Demand for a product has a constant price elasticity of −2.5, so Q = A·P^−2.5. At a price of €5, 1 000 units are sold. How many units Q are sold at a price of €4.00?

E = −2.5P1 = €5Q1 = 1 000P2 = €4.00
Q = units
6.Hard
QPD1 000€10Q = ?€15.00

Demand for a product has a constant price elasticity of −1.2, so Q = A·P^−1.2. At a price of €10, 1 000 units are sold. How many units Q are sold at a price of €15.00?

E = −1.2P1 = €10Q1 = 1 000P2 = €15.00
Q = units

Answer key

  1. 1. E = −0.2
  2. 2. Q = 448 tickets
  3. 3. E = −3.286
  4. 4. E = −0.2698
  5. 5. Q = 1747 units
  6. 6. Q = 614.7 units

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