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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Name: ____________________   Date: ____________

1.Easy
price−12%quantity demanded?%ΔQE = −2.5

The price elasticity of demand for a product is −2.5. The price is cut by 12%. By what percentage %ΔQ does the quantity demanded change?

E = −2.5%ΔP = −12%
%ΔQ = %
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 8%, the quantity demanded rises by 9.6%. Find the price elasticity of demand E.

%ΔP = −8%%ΔQ = +9.6%
E =
3.Medium
QPD2 500€20Q2​P2​ (+20%)ΔR = ?

A product sells 2 500 units per month at €20. Its price elasticity of demand is −2. The firm changes the price by +20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €20Q1 = 2 500E = −2%ΔP = +20%
ΔR = €
4.Medium
QPD1000€25.00870€27.00

When the price of a ticket changes from €25.00 to €27.00, weekly sales change from 1000 to 870. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €25.00P2 = €27.00Q1 = 1000Q2 = 870
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 160 − 2P, with P in euros. At which price P is total revenue as large as possible?

Q = 160 − 2P
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 400 − 8P, with P in euros. At which price P is total revenue as large as possible?

Q = 400 − 8P
P = €

Answer key

  1. 1. %ΔQ = 30 %
  2. 2. E = −1.2
  3. 3. ΔR = −14000 €
  4. 4. E = −1.807
  5. 5. P = 40 €
  6. 6. P = 25 €

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