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 20%, the quantity demanded falls by 16%. Find the price elasticity of demand E.

%ΔP = +20%%ΔQ = −16%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 5%, the quantity demanded rises by 12.5%. Find the price elasticity of demand E.

%ΔP = −5%%ΔQ = +12.5%
E =
3.Medium
QPD2 000€20Q2​P2​ (+15%)ΔR = ?

A product sells 2 000 units per month at €20. Its price elasticity of demand is −0.5. The firm changes the price by +15%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €20Q1 = 2 000E = −0.5%ΔP = +15%
ΔR = €
4.Medium
QPD800€12.001870€2.00

When the price of a ticket changes from €12.00 to €2.00, weekly sales change from 800 to 1870. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €12.00P2 = €2.00Q1 = 800Q2 = 1870
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 100 − 5P, with P in euros. At which price P is the price elasticity of demand equal to −0.5?

Q = 100 − 5PE = −0.5
P = €
6.Hard
QPDQ€15

The demand for a product is Q = 2500 − 50P, with P in euros. Find the price elasticity of demand E at a price of €15.

Q = 2500 − 50PP = €15
E =

Answer key

  1. 1. E = −0.8
  2. 2. E = −2.5
  3. 3. ΔR = 2550 €
  4. 4. E = −0.561
  5. 5. P = 6.667 €
  6. 6. E = −0.4286

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