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 20%, the quantity demanded rises 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 falls by 15%, the quantity demanded rises by 6%. Find the price elasticity of demand E.

%ΔP = −15%%ΔQ = +6%
E =
3.Medium
QPD500€12.00170€22.00

When the price of a ticket changes from €12.00 to €22.00, weekly sales change from 500 to 170. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €12.00P2 = €22.00Q1 = 500Q2 = 170
E =
4.Medium
QPD500€20.00600€18.00

When the price of a ticket changes from €20.00 to €18.00, weekly sales change from 500 to 600. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €18.00Q1 = 500Q2 = 600
E =
5.Hard
QPD8 000€12Q = ?€18.00

Demand for a product has a constant price elasticity of −1.5, so Q = A·P^−1.5. At a price of €12, 8 000 units are sold. How many units Q are sold at a price of €18.00?

E = −1.5P1 = €12Q1 = 8 000P2 = €18.00
Q = units
6.Hard
QPDQP = ?

The demand for a product is Q = 400 − 8P, with P in euros. At which price P is total revenue as large as possible?

Q = 400 − 8P
P = €

Answer key

  1. 1. E = −2.5
  2. 2. E = −0.4
  3. 3. E = −1.675
  4. 4. E = −1.727
  5. 5. Q = 4355 units
  6. 6. P = 25 €

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