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
price−15%quantity demanded?%ΔQE = −0.8

The price elasticity of demand for a product is −0.8. The price is cut by 15%. By what percentage %ΔQ does the quantity demanded change?

E = −0.8%ΔP = −15%
%ΔQ = %
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 12%, the quantity demanded falls by 6%. Find the price elasticity of demand E.

%ΔP = +12%%ΔQ = −6%
E =
3.Medium
QPD500€20.00340€24.00

When the price of a ticket changes from €20.00 to €24.00, weekly sales change from 500 to 340. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €24.00Q1 = 500Q2 = 340
E =
4.Medium
QPD10 000€15Q2​P2​ (+20%)ΔR = ?

A product sells 10 000 units per month at €15. Its price elasticity of demand is −0.3. The firm changes the price by +20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €15Q1 = 10 000E = −0.3%ΔP = +20%
ΔR = €
5.Hard
QPD280€12.00

The (inverse) demand for a product is P = 40 − 0.1Q, with P in euros. Find the price elasticity of demand E when 280 units are sold.

P = 40 − 0.1QQ = 280
E =
6.Hard
QPDQ€15

The demand for a product is Q = 1250 − 25P, with P in euros. Find the price elasticity of demand E at a price of €15.

Q = 1250 − 25PP = €15
E =

Answer key

  1. 1. %ΔQ = 12 %
  2. 2. E = −0.5
  3. 3. E = −2.095
  4. 4. ΔR = 19200 €
  5. 5. E = −0.4286
  6. 6. E = −0.4286

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