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 8%, the quantity demanded falls by 4.8%. Find the price elasticity of demand E.

%ΔP = +8%%ΔQ = −4.8%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 4%, the quantity demanded falls by 8%. Find the price elasticity of demand E.

%ΔP = +4%%ΔQ = −8%
E =
3.Medium
QPD800€15.00670€21.00

When the price of a ticket changes from €15.00 to €21.00, weekly sales change from 800 to 670. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €15.00P2 = €21.00Q1 = 800Q2 = 670
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 −0.5. The firm changes the price by +20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €10Q1 = 1 000E = −0.5%ΔP = +20%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 60 − 2P, with P in euros. At which price P is the price elasticity of demand equal to −0.25?

Q = 60 − 2PE = −0.25
P = €
6.Hard
QPD8 000€10Q = ?€12.00

Demand for a product has a constant price elasticity of −1.5, so Q = A·P^−1.5. At a price of €10, 8 000 units are sold. How many units Q are sold at a price of €12.00?

E = −1.5P1 = €10Q1 = 8 000P2 = €12.00
Q = units

Answer key

  1. 1. E = −0.6
  2. 2. E = −2
  3. 3. E = −0.5306
  4. 4. ΔR = 800 €
  5. 5. P = 6 €
  6. 6. Q = 6086 units

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