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 falls by 5%, the quantity demanded rises by 1%. Find the price elasticity of demand E.

%ΔP = −5%%ΔQ = +1%
E =
2.Easy
ticket price−5%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 5%, how many tickets Q will it sell per week?

Q1 = 400E = −0.8%ΔP = −5%
Q = tickets
3.Medium
QPD1200€12.00480€18.00

When the price of a ticket changes from €12.00 to €18.00, weekly sales change from 1200 to 480. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €12.00P2 = €18.00Q1 = 1200Q2 = 480
E =
4.Medium
QPD100€20.00110€16.00

When the price of a ticket changes from €20.00 to €16.00, weekly sales change from 100 to 110. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €16.00Q1 = 100Q2 = 110
E =
5.Hard
QPD5 000€5Q = ?€5.50

Demand for a product has a constant price elasticity of −2, so Q = A·P^−2. At a price of €5, 5 000 units are sold. How many units Q are sold at a price of €5.50?

E = −2P1 = €5Q1 = 5 000P2 = €5.50
Q = units
6.Hard
QPDQ€75

The demand for a product is Q = 400 − 4P, with P in euros. Find the price elasticity of demand E at a price of €75.

Q = 400 − 4PP = €75
E =

Answer key

  1. 1. E = −0.2
  2. 2. Q = 416 tickets
  3. 3. E = −2.143
  4. 4. E = −0.4286
  5. 5. Q = 4132 units
  6. 6. E = −3

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