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−2%quantity demanded?%ΔQE = −0.5

The price elasticity of demand for a product is −0.5. The price is cut by 2%. By what percentage %ΔQ does the quantity demanded change?

E = −0.5%ΔP = −2%
%ΔQ = %
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 15%, the quantity demanded rises by 37.5%. Find the price elasticity of demand E.

%ΔP = −15%%ΔQ = +37.5%
E =
3.Medium
QPD500€15.00100€25.00

When the price of a ticket changes from €15.00 to €25.00, weekly sales change from 500 to 100. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €15.00P2 = €25.00Q1 = 500Q2 = 100
E =
4.Medium
QPD2 000€12Q2​P2​ (+10%)ΔR = ?

A product sells 2 000 units per month at €12. Its price elasticity of demand is −0.3. The firm changes the price by +10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €12Q1 = 2 000E = −0.3%ΔP = +10%
ΔR = €
5.Hard
QPD400€32.00

The (inverse) demand for a product is P = 40 − 0.02Q, with P in euros. Find the price elasticity of demand E when 400 units are sold.

P = 40 − 0.02QQ = 400
E =
6.Hard
QPDQP = ?

The demand for a product is Q = 1600 − 20P, with P in euros. At which price P is total revenue as large as possible?

Q = 1600 − 20P
P = €

Answer key

  1. 1. %ΔQ = 1 %
  2. 2. E = −2.5
  3. 3. E = −2.667
  4. 4. ΔR = 1608 €
  5. 5. E = −4
  6. 6. P = 40 €

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