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 4%. Find the price elasticity of demand E.

%ΔP = −5%%ΔQ = +4%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 12%, the quantity demanded rises by 6%. Find the price elasticity of demand E.

%ΔP = −12%%ΔQ = +6%
E =
3.Medium
QPD200€8.00230€7.50

When the price of a ticket changes from €8.00 to €7.50, weekly sales change from 200 to 230. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €8.00P2 = €7.50Q1 = 200Q2 = 230
E =
4.Medium
QPD1 000€10Q2​P2​ (−20%)ΔR = ?

A product sells 1 000 units per month at €10. Its price elasticity of demand is −2.5. The firm changes the price by −20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €10Q1 = 1 000E = −2.5%ΔP = −20%
ΔR = €
5.Hard
QPDQ€24

The demand for a product is Q = 120 − 2P, with P in euros. Find the price elasticity of demand E at a price of €24.

Q = 120 − 2PP = €24
E =
6.Hard
QPDQP = ?

The demand for a product is Q = 600 − 20P, with P in euros. At which price P is total revenue as large as possible?

Q = 600 − 20P
P = €

Answer key

  1. 1. E = −0.8
  2. 2. E = −0.5
  3. 3. E = −2.163
  4. 4. ΔR = 2000 €
  5. 5. E = −0.6667
  6. 6. P = 15 €

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