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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 4%, the quantity demanded rises by 8%. Find the price elasticity of demand E.

%ΔP = −4%%ΔQ = +8%
E =
2.Easy
ticket price+8%tickets per week?2 000 → QE = −0.5

A cinema sells 2 000 tickets per week. The price elasticity of demand is −0.5. If the ticket price rises by 8%, how many tickets Q will it sell per week?

Q1 = 2 000E = −0.5%ΔP = +8%
Q = tickets
3.Medium
QPD2 500€12Q2​P2​ (+15%)ΔR = ?

A product sells 2 500 units per month at €12. Its price elasticity of demand is −2.5. The firm changes the price by +15%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €12Q1 = 2 500E = −2.5%ΔP = +15%
ΔR = €
4.Medium
QPD800€2.00320€3.50

When the price of a ticket changes from €2.00 to €3.50, weekly sales change from 800 to 320. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €2.00P2 = €3.50Q1 = 800Q2 = 320
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 250 − 5P, with P in euros. At which price P is total revenue as large as possible?

Q = 250 − 5P
P = €
6.Hard
QPD1 000€5Q = ?€6.50

Demand for a product has a constant price elasticity of −0.8, so Q = A·P^−0.8. At a price of €5, 1 000 units are sold. How many units Q are sold at a price of €6.50?

E = −0.8P1 = €5Q1 = 1 000P2 = €6.50
Q = units

Answer key

  1. 1. E = −2
  2. 2. Q = 1920 tickets
  3. 3. ΔR = −8438 €
  4. 4. E = −1.571
  5. 5. P = 25 €
  6. 6. Q = 810.7 units

Full step-by-step solutions: practise this topic on examproblems.com.