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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
ticket price+12%tickets per week?500 → QE = −0.4

A cinema sells 500 tickets per week. The price elasticity of demand is −0.4. If the ticket price rises by 12%, how many tickets Q will it sell per week?

Q1 = 500E = −0.4%ΔP = +12%
Q = tickets
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 8%, the quantity demanded falls by 9.6%. Find the price elasticity of demand E.

%ΔP = +8%%ΔQ = −9.6%
E =
3.Medium
QPD4 000€4Q2​P2​ (−10%)ΔR = ?

A product sells 4 000 units per month at €4. Its price elasticity of demand is −2.5. The firm changes the price by −10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €4Q1 = 4 000E = −2.5%ΔP = −10%
ΔR = €
4.Medium
QPD1200€4.001020€5.50

When the price of a ticket changes from €4.00 to €5.50, weekly sales change from 1200 to 1020. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €4.00P2 = €5.50Q1 = 1200Q2 = 1020
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 200 − 4P, with P in euros. At which price P is the price elasticity of demand equal to −0.5?

Q = 200 − 4PE = −0.5
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 1500 − 25P, with P in euros. At which price P is total revenue as large as possible?

Q = 1500 − 25P
P = €

Answer key

  1. 1. Q = 476 tickets
  2. 2. E = −1.2
  3. 3. ΔR = 2000 €
  4. 4. E = −0.5135
  5. 5. P = 16.67 €
  6. 6. P = 30 €

Full step-by-step solutions: practise this topic on examproblems.com.