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 25%, the quantity demanded falls by 30%. Find the price elasticity of demand E.

%ΔP = +25%%ΔQ = −30%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 5%, the quantity demanded falls by 7.5%. Find the price elasticity of demand E.

%ΔP = +5%%ΔQ = −7.5%
E =
3.Medium
QPD200€5.00180€6.00

When the price of a ticket changes from €5.00 to €6.00, weekly sales change from 200 to 180. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €5.00P2 = €6.00Q1 = 200Q2 = 180
E =
4.Medium
QPD500€4.00600€3.00

When the price of a ticket changes from €4.00 to €3.00, weekly sales change from 500 to 600. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €4.00P2 = €3.00Q1 = 500Q2 = 600
E =
5.Hard
QPD8 000€20Q = ?€12.00

Demand for a product has a constant price elasticity of −3, so Q = A·P^−3. At a price of €20, 8 000 units are sold. How many units Q are sold at a price of €12.00?

E = −3P1 = €20Q1 = 8 000P2 = €12.00
Q = units
6.Hard
QPDQP = ?

The demand for a product is Q = 640 − 8P, with P in euros. At which price P is total revenue as large as possible?

Q = 640 − 8P
P = €

Answer key

  1. 1. E = −1.2
  2. 2. E = −1.5
  3. 3. E = −0.5789
  4. 4. E = −0.6364
  5. 5. Q = 37037 units
  6. 6. P = 40 €

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