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 15%, the quantity demanded rises by 3%. Find the price elasticity of demand E.

%ΔP = −15%%ΔQ = +3%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 8%, the quantity demanded rises by 6.4%. Find the price elasticity of demand E.

%ΔP = −8%%ΔQ = +6.4%
E =
3.Medium
QPD4 000€20Q2​P2​ (+20%)ΔR = ?

A product sells 4 000 units per month at €20. Its price elasticity of demand is −2. The firm changes the price by +20%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €20Q1 = 4 000E = −2%ΔP = +20%
ΔR = €
4.Medium
QPD1000€40.00500€50.00

When the price of a ticket changes from €40.00 to €50.00, weekly sales change from 1000 to 500. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €40.00P2 = €50.00Q1 = 1000Q2 = 500
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
QPDQP = ?

The demand for a product is Q = 1000 − 25P, with P in euros. At which price P is the price elasticity of demand equal to −3?

Q = 1000 − 25PE = −3
P = €

Answer key

  1. 1. E = −0.2
  2. 2. E = −0.8
  3. 3. ΔR = −22400 €
  4. 4. E = −3
  5. 5. P = 25 €
  6. 6. P = 30 €

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