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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Name: ____________________   Date: ____________

1.Easy
price+8%quantity demanded?%ΔQE = −0.8

The price elasticity of demand for a product is −0.8. The price is raised by 8%. By what percentage %ΔQ does the quantity demanded change?

E = −0.8%ΔP = +8%
%ΔQ = %
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 8%, the quantity demanded rises by 3.2%. Find the price elasticity of demand E.

%ΔP = −8%%ΔQ = +3.2%
E =
3.Medium
QPD100€40.0070€46.00

When the price of a ticket changes from €40.00 to €46.00, weekly sales change from 100 to 70. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €40.00P2 = €46.00Q1 = 100Q2 = 70
E =
4.Medium
QPD1200€8.00600€10.50

When the price of a ticket changes from €8.00 to €10.50, weekly sales change from 1200 to 600. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €8.00P2 = €10.50Q1 = 1200Q2 = 600
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 500 − 10P, with P in euros. At which price P is total revenue as large as possible?

Q = 500 − 10P
P = €
6.Hard
QPD2 000€8Q = ?€4.80

Demand for a product has a constant price elasticity of −2.5, so Q = A·P^−2.5. At a price of €8, 2 000 units are sold. How many units Q are sold at a price of €4.80?

E = −2.5P1 = €8Q1 = 2 000P2 = €4.80
Q = units

Answer key

  1. 1. %ΔQ = −6.4 %
  2. 2. E = −0.4
  3. 3. E = −2.529
  4. 4. E = −2.467
  5. 5. P = 25 €
  6. 6. Q = 7172 units

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