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
ticket price−4%tickets per week?2 000 → QE = −0.8

A cinema sells 2 000 tickets per week. The price elasticity of demand is −0.8. If the ticket price is cut by 4%, how many tickets Q will it sell per week?

Q1 = 2 000E = −0.8%ΔP = −4%
Q = tickets
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 4%, the quantity demanded falls by 0.8%. Find the price elasticity of demand E.

%ΔP = +4%%ΔQ = −0.8%
E =
3.Medium
QPD10 000€4Q2​P2​ (−20%)ΔR = ?

A product sells 10 000 units per month at €4. Its price elasticity of demand is −0.3. The firm changes the price by −20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €4Q1 = 10 000E = −0.3%ΔP = −20%
ΔR = €
4.Medium
QPD400€8.00250€10.50

When the price of a ticket changes from €8.00 to €10.50, weekly sales change from 400 to 250. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €8.00P2 = €10.50Q1 = 400Q2 = 250
E =
5.Hard
QPDQ€32

The demand for a product is Q = 400 − 5P, with P in euros. Find the price elasticity of demand E at a price of €32.

Q = 400 − 5PP = €32
E =
6.Hard
QPDQP = ?

The demand for a product is Q = 800 − 10P, with P in euros. At which price P is the price elasticity of demand equal to −3?

Q = 800 − 10PE = −3
P = €

Answer key

  1. 1. Q = 2064 tickets
  2. 2. E = −0.2
  3. 3. ΔR = −6080 €
  4. 4. E = −1.708
  5. 5. E = −0.6667
  6. 6. P = 60 €

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