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+12%tickets per week?500 → QE = −0.5

A cinema sells 500 tickets per week. The price elasticity of demand is −0.5. If the ticket price rises by 12%, how many tickets Q will it sell per week?

Q1 = 500E = −0.5%ΔP = +12%
Q = tickets
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 5%, the quantity demanded rises by 3%. Find the price elasticity of demand E.

%ΔP = −5%%ΔQ = +3%
E =
3.Medium
QPD100€20.00120€18.00

When the price of a ticket changes from €20.00 to €18.00, weekly sales change from 100 to 120. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €18.00Q1 = 100Q2 = 120
E =
4.Medium
QPD1000€40.00600€50.00

When the price of a ticket changes from €40.00 to €50.00, weekly sales change from 1000 to 600. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €40.00P2 = €50.00Q1 = 1000Q2 = 600
E =
5.Hard
QPD2 000€25Q = ?€35.00

Demand for a product has a constant price elasticity of −0.5, so Q = A·P^−0.5. At a price of €25, 2 000 units are sold. How many units Q are sold at a price of €35.00?

E = −0.5P1 = €25Q1 = 2 000P2 = €35.00
Q = units
6.Hard
QPD5 000€8Q = ?€4.00

Demand for a product has a constant price elasticity of −1.2, so Q = A·P^−1.2. At a price of €8, 5 000 units are sold. How many units Q are sold at a price of €4.00?

E = −1.2P1 = €8Q1 = 5 000P2 = €4.00
Q = units

Answer key

  1. 1. Q = 470 tickets
  2. 2. E = −0.6
  3. 3. E = −1.727
  4. 4. E = −2.25
  5. 5. Q = 1690 units
  6. 6. Q = 11487 units

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