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
ticket price−8%tickets per week?1 000 → QE = −1.2

A cinema sells 1 000 tickets per week. The price elasticity of demand is −1.2. If the ticket price is cut by 8%, how many tickets Q will it sell per week?

Q1 = 1 000E = −1.2%ΔP = −8%
Q = tickets
2.Easy
price−2%quantity demanded?%ΔQE = −0.6

The price elasticity of demand for a product is −0.6. The price is cut by 2%. By what percentage %ΔQ does the quantity demanded change?

E = −0.6%ΔP = −2%
%ΔQ = %
3.Medium
QPD5 000€4Q2​P2​ (+5%)ΔR = ?

A product sells 5 000 units per month at €4. Its price elasticity of demand is −2.5. The firm changes the price by +5%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €4Q1 = 5 000E = −2.5%ΔP = +5%
ΔR = €
4.Medium
QPD200€8.00240€7.00

When the price of a ticket changes from €8.00 to €7.00, weekly sales change from 200 to 240. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €8.00P2 = €7.00Q1 = 200Q2 = 240
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 500 − 25P, with P in euros. At which price P is total revenue as large as possible?

Q = 500 − 25P
P = €
6.Hard
QPD40€16.00

The (inverse) demand for a product is P = 20 − 0.1Q, with P in euros. Find the price elasticity of demand E when 40 units are sold.

P = 20 − 0.1QQ = 40
E =

Answer key

  1. 1. Q = 1096 tickets
  2. 2. %ΔQ = 1.2 %
  3. 3. ΔR = −1625 €
  4. 4. E = −1.364
  5. 5. P = 10 €
  6. 6. E = −4

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