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 8%, the quantity demanded rises by 1.6%. Find the price elasticity of demand E.

%ΔP = −8%%ΔQ = +1.6%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 5%, the quantity demanded rises by 6%. Find the price elasticity of demand E.

%ΔP = −5%%ΔQ = +6%
E =
3.Medium
QPD1200€12.001360€10.00

When the price of a ticket changes from €12.00 to €10.00, weekly sales change from 1200 to 1360. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €12.00P2 = €10.00Q1 = 1200Q2 = 1360
E =
4.Medium
QPD10 000€10Q2​P2​ (+20%)ΔR = ?

A product sells 10 000 units per month at €10. Its price elasticity of demand is −1.5. The firm changes the price by +20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €10Q1 = 10 000E = −1.5%ΔP = +20%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 100 − 2P, with P in euros. At which price P is total revenue as large as possible?

Q = 100 − 2P
P = €
6.Hard
QPD1 000€25Q = ?€22.50

Demand for a product has a constant price elasticity of −1.5, so Q = A·P^−1.5. At a price of €25, 1 000 units are sold. How many units Q are sold at a price of €22.50?

E = −1.5P1 = €25Q1 = 1 000P2 = €22.50
Q = units

Answer key

  1. 1. E = −0.2
  2. 2. E = −1.2
  3. 3. E = −0.6875
  4. 4. ΔR = −16000 €
  5. 5. P = 25 €
  6. 6. Q = 1171 units

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