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
price−4%quantity demanded?%ΔQE = −2

The price elasticity of demand for a product is −2. The price is cut by 4%. By what percentage %ΔQ does the quantity demanded change?

E = −2%ΔP = −4%
%ΔQ = %
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 25%, the quantity demanded falls by 12.5%. Find the price elasticity of demand E.

%ΔP = +25%%ΔQ = −12.5%
E =
3.Medium
QPD2 000€10Q2​P2​ (−10%)ΔR = ?

A product sells 2 000 units per month at €10. Its price elasticity of demand is −0.4. The firm changes the price by −10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €10Q1 = 2 000E = −0.4%ΔP = −10%
ΔR = €
4.Medium
QPD1000€4.001150€3.00

When the price of a ticket changes from €4.00 to €3.00, weekly sales change from 1000 to 1150. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €4.00P2 = €3.00Q1 = 1000Q2 = 1150
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 200 − 10P, with P in euros. At which price P is total revenue as large as possible?

Q = 200 − 10P
P = €
6.Hard
QPDQ€6

The demand for a product is Q = 500 − 25P, with P in euros. Find the price elasticity of demand E at a price of €6.

Q = 500 − 25PP = €6
E =

Answer key

  1. 1. %ΔQ = 8 %
  2. 2. E = −0.5
  3. 3. ΔR = −1280 €
  4. 4. E = −0.4884
  5. 5. P = 10 €
  6. 6. E = −0.4286

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