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 50%. Find the price elasticity of demand E.

%ΔP = +20%%ΔQ = −50%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 25%, the quantity demanded falls by 12.5%. Find the price elasticity of demand E.

%ΔP = +25%%ΔQ = −12.5%
E =
3.Medium
QPD400€5.00260€6.50

When the price of a ticket changes from €5.00 to €6.50, weekly sales change from 400 to 260. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €5.00P2 = €6.50Q1 = 400Q2 = 260
E =
4.Medium
QPD10 000€20Q2​P2​ (+20%)ΔR = ?

A product sells 10 000 units per month at €20. 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 = €20Q1 = 10 000E = −1.5%ΔP = +20%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 2500 − 25P, with P in euros. At which price P is total revenue as large as possible?

Q = 2500 − 25P
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 240 − 4P, with P in euros. At which price P is total revenue as large as possible?

Q = 240 − 4P
P = €

Answer key

  1. 1. E = −2.5
  2. 2. E = −0.5
  3. 3. E = −1.626
  4. 4. ΔR = −32000 €
  5. 5. P = 50 €
  6. 6. P = 30 €

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