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
ticket price−4%tickets per week?800 → QE = −2

A cinema sells 800 tickets per week. The price elasticity of demand is −2. If the ticket price is cut by 4%, how many tickets Q will it sell per week?

Q1 = 800E = −2%ΔP = −4%
Q = tickets
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 4%, the quantity demanded rises by 0.8%. Find the price elasticity of demand E.

%ΔP = −4%%ΔQ = +0.8%
E =
3.Medium
QPD400€20.00300€24.00

When the price of a ticket changes from €20.00 to €24.00, weekly sales change from 400 to 300. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €24.00Q1 = 400Q2 = 300
E =
4.Medium
QPD400€2.0040€3.50

When the price of a ticket changes from €2.00 to €3.50, weekly sales change from 400 to 40. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €2.00P2 = €3.50Q1 = 400Q2 = 40
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 600 − 10P, with P in euros. At which price P is total revenue as large as possible?

Q = 600 − 10P
P = €
6.Hard
QPDQ€18

The demand for a product is Q = 300 − 5P, with P in euros. Find the price elasticity of demand E at a price of €18.

Q = 300 − 5PP = €18
E =

Answer key

  1. 1. Q = 864 tickets
  2. 2. E = −0.2
  3. 3. E = −1.571
  4. 4. E = −3
  5. 5. P = 30 €
  6. 6. E = −0.4286

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