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
ticket price−10%tickets per week?1 000 → QE = −0.4

A cinema sells 1 000 tickets per week. The price elasticity of demand is −0.4. If the ticket price is cut by 10%, how many tickets Q will it sell per week?

Q1 = 1 000E = −0.4%ΔP = −10%
Q = tickets
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 10%, the quantity demanded rises by 5%. Find the price elasticity of demand E.

%ΔP = −10%%ΔQ = +5%
E =
3.Medium
QPD200€4.00160€4.50

When the price of a ticket changes from €4.00 to €4.50, weekly sales change from 200 to 160. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €4.00P2 = €4.50Q1 = 200Q2 = 160
E =
4.Medium
QPD800€20.00990€16.00

When the price of a ticket changes from €20.00 to €16.00, weekly sales change from 800 to 990. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €16.00Q1 = 800Q2 = 990
E =
5.Hard
QPDQ€70

The demand for a product is Q = 5000 − 50P, with P in euros. Find the price elasticity of demand E at a price of €70.

Q = 5000 − 50PP = €70
E =
6.Hard
QPDQP = ?

The demand for a product is Q = 300 − 5P, with P in euros. At which price P is total revenue as large as possible?

Q = 300 − 5P
P = €

Answer key

  1. 1. Q = 1040 tickets
  2. 2. E = −0.5
  3. 3. E = −1.889
  4. 4. E = −0.9553
  5. 5. E = −2.333
  6. 6. P = 30 €

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