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 4%, the quantity demanded rises by 10%. Find the price elasticity of demand E.

%ΔP = −4%%ΔQ = +10%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 20%, the quantity demanded falls by 40%. Find the price elasticity of demand E.

%ΔP = +20%%ΔQ = −40%
E =
3.Medium
QPD1200€2.002640€0.50

When the price of a ticket changes from €2.00 to €0.50, weekly sales change from 1200 to 2640. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €2.00P2 = €0.50Q1 = 1200Q2 = 2640
E =
4.Medium
QPD200€4.00250€2.50

When the price of a ticket changes from €4.00 to €2.50, weekly sales change from 200 to 250. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €4.00P2 = €2.50Q1 = 200Q2 = 250
E =
5.Hard
QPD10 000€8Q = ?€5.60

Demand for a product has a constant price elasticity of −1.2, so Q = A·P^−1.2. At a price of €8, 10 000 units are sold. How many units Q are sold at a price of €5.60?

E = −1.2P1 = €8Q1 = 10 000P2 = €5.60
Q = units
6.Hard
QPDQ€18

The demand for a product is Q = 120 − 4P, with P in euros. Find the price elasticity of demand E at a price of €18.

Q = 120 − 4PP = €18
E =

Answer key

  1. 1. E = −2.5
  2. 2. E = −2
  3. 3. E = −0.625
  4. 4. E = −0.4815
  5. 5. Q = 15342 units
  6. 6. E = −1.5

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