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 falls by 25%, the quantity demanded rises 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 falls by 5%, the quantity demanded rises by 2.5%. Find the price elasticity of demand E.

%ΔP = −5%%ΔQ = +2.5%
E =
3.Medium
QPD10 000€12Q2​P2​ (+10%)ΔR = ?

A product sells 10 000 units per month at €12. Its price elasticity of demand is −2.5. The firm changes the price by +10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €12Q1 = 10 000E = −2.5%ΔP = +10%
ΔR = €
4.Medium
QPD1000€25.001060€21.00

When the price of a ticket changes from €25.00 to €21.00, weekly sales change from 1000 to 1060. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €25.00P2 = €21.00Q1 = 1000Q2 = 1060
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 240 − 4P, with P in euros. At which price P is the price elasticity of demand equal to −0.5?

Q = 240 − 4PE = −0.5
P = €
6.Hard
QPD5 000€5Q = ?€3.50

Demand for a product has a constant price elasticity of −0.5, so Q = A·P^−0.5. At a price of €5, 5 000 units are sold. How many units Q are sold at a price of €3.50?

E = −0.5P1 = €5Q1 = 5 000P2 = €3.50
Q = units

Answer key

  1. 1. E = −1.2
  2. 2. E = −0.5
  3. 3. ΔR = −21000 €
  4. 4. E = −0.335
  5. 5. P = 20 €
  6. 6. Q = 5976 units

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