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
ticket price−15%tickets per week?1 200 → QE = −1.5

A cinema sells 1 200 tickets per week. The price elasticity of demand is −1.5. If the ticket price is cut by 15%, how many tickets Q will it sell per week?

Q1 = 1 200E = −1.5%ΔP = −15%
Q = tickets
2.Easy
price−2%quantity demanded?%ΔQE = −0.3

The price elasticity of demand for a product is −0.3. The price is cut by 2%. By what percentage %ΔQ does the quantity demanded change?

E = −0.3%ΔP = −2%
%ΔQ = %
3.Medium
QPD100€15.00120€13.00

When the price of a ticket changes from €15.00 to €13.00, weekly sales change from 100 to 120. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €15.00P2 = €13.00Q1 = 100Q2 = 120
E =
4.Medium
QPD1000€25.001050€23.00

When the price of a ticket changes from €25.00 to €23.00, weekly sales change from 1000 to 1050. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €25.00P2 = €23.00Q1 = 1000Q2 = 1050
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 500 − 10P, with P in euros. At which price P is total revenue as large as possible?

Q = 500 − 10P
P = €
6.Hard
QPD5 000€8Q = ?€4.80

Demand for a product has a constant price elasticity of −2, so Q = A·P^−2. At a price of €8, 5 000 units are sold. How many units Q are sold at a price of €4.80?

E = −2P1 = €8Q1 = 5 000P2 = €4.80
Q = units

Answer key

  1. 1. Q = 1470 tickets
  2. 2. %ΔQ = 0.6 %
  3. 3. E = −1.273
  4. 4. E = −0.5854
  5. 5. P = 25 €
  6. 6. Q = 13889 units

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