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 8%, the quantity demanded rises by 6.4%. Find the price elasticity of demand E.

%ΔP = −8%%ΔQ = +6.4%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 4%, the quantity demanded falls by 10%. Find the price elasticity of demand E.

%ΔP = +4%%ΔQ = −10%
E =
3.Medium
QPD4 000€12Q2​P2​ (+20%)ΔR = ?

A product sells 4 000 units per month at €12. Its price elasticity of demand is −1.5. The firm changes the price by +20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €12Q1 = 4 000E = −1.5%ΔP = +20%
ΔR = €
4.Medium
QPD100€20.0080€22.00

When the price of a ticket changes from €20.00 to €22.00, weekly sales change from 100 to 80. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €22.00Q1 = 100Q2 = 80
E =
5.Hard
QPDQ€24

The demand for a product is Q = 2000 − 50P, with P in euros. Find the price elasticity of demand E at a price of €24.

Q = 2000 − 50PP = €24
E =
6.Hard
QPDQ€28

The demand for a product is Q = 1000 − 25P, with P in euros. Find the price elasticity of demand E at a price of €28.

Q = 1000 − 25PP = €28
E =

Answer key

  1. 1. E = −0.8
  2. 2. E = −2.5
  3. 3. ΔR = −7680 €
  4. 4. E = −2.333
  5. 5. E = −1.5
  6. 6. E = −2.333

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