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

%ΔP = +10%%ΔQ = −15%
E =
2.Easy
ticket price−15%tickets per week?1 000 → QE = −2

A cinema sells 1 000 tickets per week. The price elasticity of demand is −2. If the ticket price is cut by 15%, how many tickets Q will it sell per week?

Q1 = 1 000E = −2%ΔP = −15%
Q = tickets
3.Medium
QPD1000€8.001130€7.50

When the price of a ticket changes from €8.00 to €7.50, weekly sales change from 1000 to 1130. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €8.00P2 = €7.50Q1 = 1000Q2 = 1130
E =
4.Medium
QPD5 000€10Q2​P2​ (−15%)ΔR = ?

A product sells 5 000 units per month at €10. Its price elasticity of demand is −1.5. The firm changes the price by −15%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €10Q1 = 5 000E = −1.5%ΔP = −15%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 150 − 5P, with P in euros. At which price P is total revenue as large as possible?

Q = 150 − 5P
P = €
6.Hard
QPD450€21.00

The (inverse) demand for a product is P = 30 − 0.02Q, with P in euros. Find the price elasticity of demand E when 450 units are sold.

P = 30 − 0.02QQ = 450
E =

Answer key

  1. 1. E = −1.5
  2. 2. Q = 1300 tickets
  3. 3. E = −1.892
  4. 4. ΔR = 2063 €
  5. 5. P = 15 €
  6. 6. E = −2.333

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