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 rises by 4%, the quantity demanded falls by 6%. Find the price elasticity of demand E.

%ΔP = +4%%ΔQ = −6%
E =
2.Easy
ticket price−5%tickets per week?1 200 → QE = −0.4

A cinema sells 1 200 tickets per week. The price elasticity of demand is −0.4. If the ticket price is cut by 5%, how many tickets Q will it sell per week?

Q1 = 1 200E = −0.4%ΔP = −5%
Q = tickets
3.Medium
QPD800€40.00640€50.00

When the price of a ticket changes from €40.00 to €50.00, weekly sales change from 800 to 640. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €40.00P2 = €50.00Q1 = 800Q2 = 640
E =
4.Medium
QPD10 000€5Q2​P2​ (−10%)ΔR = ?

A product sells 10 000 units per month at €5. 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 = €5Q1 = 10 000E = −0.4%ΔP = −10%
ΔR = €
5.Hard
QPDQP = ?

The demand for a product is Q = 320 − 4P, with P in euros. At which price P is total revenue as large as possible?

Q = 320 − 4P
P = €
6.Hard
QPDQ€75

The demand for a product is Q = 5000 − 50P, with P in euros. Find the price elasticity of demand E at a price of €75.

Q = 5000 − 50PP = €75
E =

Answer key

  1. 1. E = −1.5
  2. 2. Q = 1224 tickets
  3. 3. E = −1
  4. 4. ΔR = −3200 €
  5. 5. P = 40 €
  6. 6. E = −3

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