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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 15%, the quantity demanded falls by 7.5%. Find the price elasticity of demand E.

%ΔP = +15%%ΔQ = −7.5%
E =
2.Easy
QPDQ1​P1​Q2​P2​

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

%ΔP = −10%%ΔQ = +4%
E =
3.Medium
QPD2 500€25Q2​P2​ (+10%)ΔR = ?

A product sells 2 500 units per month at €25. Its price elasticity of demand is −1.5. The firm changes the price by +10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €25Q1 = 2 500E = −1.5%ΔP = +10%
ΔR = €
4.Medium
QPD200€20.00270€14.00

When the price of a ticket changes from €20.00 to €14.00, weekly sales change from 200 to 270. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €14.00Q1 = 200Q2 = 270
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 320 − 8P, with P in euros. At which price P is total revenue as large as possible?

Q = 320 − 8P
P = €
6.Hard
QPDQ€75

The demand for a product is Q = 1000 − 10P, with P in euros. Find the price elasticity of demand E at a price of €75.

Q = 1000 − 10PP = €75
E =

Answer key

  1. 1. E = −0.5
  2. 2. E = −0.4
  3. 3. ΔR = −4062 €
  4. 4. E = −0.844
  5. 5. P = 20 €
  6. 6. E = −3

Full step-by-step solutions: practise this topic on examproblems.com.