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 5%, the quantity demanded rises by 2%. Find the price elasticity of demand E.

%ΔP = −5%%ΔQ = +2%
E =
2.Easy
ticket price−12%tickets per week?2 000 → QE = −2.5

A cinema sells 2 000 tickets per week. The price elasticity of demand is −2.5. If the ticket price is cut by 12%, how many tickets Q will it sell per week?

Q1 = 2 000E = −2.5%ΔP = −12%
Q = tickets
3.Medium
QPD200€8.00230€7.50

When the price of a ticket changes from €8.00 to €7.50, weekly sales change from 200 to 230. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €8.00P2 = €7.50Q1 = 200Q2 = 230
E =
4.Medium
QPD5 000€5Q2​P2​ (+5%)ΔR = ?

A product sells 5 000 units per month at €5. Its price elasticity of demand is −2. The firm changes the price by +5%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €5Q1 = 5 000E = −2%ΔP = +5%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 600 − 10P, with P in euros. At which price P is the price elasticity of demand equal to −3?

Q = 600 − 10PE = −3
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 500 − 5P, with P in euros. At which price P is total revenue as large as possible?

Q = 500 − 5P
P = €

Answer key

  1. 1. E = −0.4
  2. 2. Q = 2600 tickets
  3. 3. E = −2.163
  4. 4. ΔR = −1375 €
  5. 5. P = 45 €
  6. 6. P = 50 €

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