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−8%tickets per week?500 → QE = −0.4

A cinema sells 500 tickets per week. The price elasticity of demand is −0.4. If the ticket price is cut by 8%, how many tickets Q will it sell per week?

Q1 = 500E = −0.4%ΔP = −8%
Q = tickets
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product rises by 25%, the quantity demanded falls by 12.5%. Find the price elasticity of demand E.

%ΔP = +25%%ΔQ = −12.5%
E =
3.Medium
QPD800€20.00770€22.00

When the price of a ticket changes from €20.00 to €22.00, weekly sales change from 800 to 770. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €20.00P2 = €22.00Q1 = 800Q2 = 770
E =
4.Medium
QPD100€10.0090€12.00

When the price of a ticket changes from €10.00 to €12.00, weekly sales change from 100 to 90. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €10.00P2 = €12.00Q1 = 100Q2 = 90
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 800 − 20P, with P in euros. At which price P is total revenue as large as possible?

Q = 800 − 20P
P = €
6.Hard
QPDQP = ?

The demand for a product is Q = 250 − 5P, with P in euros. At which price P is the price elasticity of demand equal to −0.25?

Q = 250 − 5PE = −0.25
P = €

Answer key

  1. 1. Q = 516 tickets
  2. 2. E = −0.5
  3. 3. E = −0.4013
  4. 4. E = −0.5789
  5. 5. P = 20 €
  6. 6. P = 10 €

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