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
price−4%quantity demanded?%ΔQE = −1.2

The price elasticity of demand for a product is −1.2. The price is cut by 4%. By what percentage %ΔQ does the quantity demanded change?

E = −1.2%ΔP = −4%
%ΔQ = %
2.Easy
ticket price−10%tickets per week?400 → QE = −1.2

A cinema sells 400 tickets per week. The price elasticity of demand is −1.2. If the ticket price is cut by 10%, how many tickets Q will it sell per week?

Q1 = 400E = −1.2%ΔP = −10%
Q = tickets
3.Medium
QPD400€10.00210€16.00

When the price of a ticket changes from €10.00 to €16.00, weekly sales change from 400 to 210. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €10.00P2 = €16.00Q1 = 400Q2 = 210
E =
4.Medium
QPD1000€4.001750€2.50

When the price of a ticket changes from €4.00 to €2.50, weekly sales change from 1000 to 1750. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €4.00P2 = €2.50Q1 = 1000Q2 = 1750
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 5000 − 50P, with P in euros. At which price P is total revenue as large as possible?

Q = 5000 − 50P
P = €
6.Hard
QPDQ€56

The demand for a product is Q = 2000 − 25P, with P in euros. Find the price elasticity of demand E at a price of €56.

Q = 2000 − 25PP = €56
E =

Answer key

  1. 1. %ΔQ = 4.8 %
  2. 2. Q = 448 tickets
  3. 3. E = −1.35
  4. 4. E = −1.182
  5. 5. P = 50 €
  6. 6. E = −2.333

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