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 12%, the quantity demanded rises by 9.6%. Find the price elasticity of demand E.

%ΔP = −12%%ΔQ = +9.6%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 12%, the quantity demanded falls by 2.4%. Find the price elasticity of demand E.

%ΔP = +12%%ΔQ = −2.4%
E =
3.Medium
QPD10 000€5Q2​P2​ (−20%)ΔR = ?

A product sells 10 000 units per month at €5. Its price elasticity of demand is −2.5. The firm changes the price by −20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €5Q1 = 10 000E = −2.5%ΔP = −20%
ΔR = €
4.Medium
QPD100€25.0080€29.00

When the price of a ticket changes from €25.00 to €29.00, weekly sales change from 100 to 80. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €25.00P2 = €29.00Q1 = 100Q2 = 80
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 1250 − 25P, with P in euros. At which price P is total revenue as large as possible?

Q = 1250 − 25P
P = €
6.Hard
QPDQ€32

The demand for a product is Q = 800 − 20P, with P in euros. Find the price elasticity of demand E at a price of €32.

Q = 800 − 20PP = €32
E =

Answer key

  1. 1. E = −0.8
  2. 2. E = −0.2
  3. 3. ΔR = 10000 €
  4. 4. E = −1.5
  5. 5. P = 25 €
  6. 6. E = −4

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