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 4%, the quantity demanded rises by 1.6%. Find the price elasticity of demand E.

%ΔP = −4%%ΔQ = +1.6%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 10%, the quantity demanded rises by 20%. Find the price elasticity of demand E.

%ΔP = −10%%ΔQ = +20%
E =
3.Medium
QPD1 000€10Q2​P2​ (−10%)ΔR = ?

A product sells 1 000 units per month at €10. 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 = €10Q1 = 1 000E = −0.4%ΔP = −10%
ΔR = €
4.Medium
QPD100€8.0050€10.50

When the price of a ticket changes from €8.00 to €10.50, weekly sales change from 100 to 50. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €8.00P2 = €10.50Q1 = 100Q2 = 50
E =
5.Hard
QPDQ€23

The demand for a product is Q = 150 − 5P, with P in euros. Find the price elasticity of demand E at a price of €23.

Q = 150 − 5PP = €23
E =
6.Hard
QPDQ€16

The demand for a product is Q = 1600 − 20P, with P in euros. Find the price elasticity of demand E at a price of €16.

Q = 1600 − 20PP = €16
E =

Answer key

  1. 1. E = −0.4
  2. 2. E = −2
  3. 3. ΔR = −640 €
  4. 4. E = −2.467
  5. 5. E = −3.286
  6. 6. E = −0.25

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