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 rises by 20%, the quantity demanded falls by 8%. Find the price elasticity of demand E.

%ΔP = +20%%ΔQ = −8%
E =
2.Easy
price−4%quantity demanded?%ΔQE = −1.5

The price elasticity of demand for a product is −1.5. The price is cut by 4%. By what percentage %ΔQ does the quantity demanded change?

E = −1.5%ΔP = −4%
%ΔQ = %
3.Medium
QPD1200€20.001060€26.00

When the price of a ticket changes from €20.00 to €26.00, weekly sales change from 1200 to 1060. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €26.00Q1 = 1200Q2 = 1060
E =
4.Medium
QPD10 000€12Q2​P2​ (+20%)ΔR = ?

A product sells 10 000 units per month at €12. 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 = €12Q1 = 10 000E = −2.5%ΔP = +20%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 1000 − 10P, with P in euros. At which price P is total revenue as large as possible?

Q = 1000 − 10P
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 4000 − 50P, with P in euros. At which price P is total revenue as large as possible?

Q = 4000 − 50P
P = €

Answer key

  1. 1. E = −0.4
  2. 2. %ΔQ = 6 %
  3. 3. E = −0.4749
  4. 4. ΔR = −48000 €
  5. 5. P = 50 €
  6. 6. P = 40 €

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