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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
ticket price−5%tickets per week?200 → QE = −2

A cinema sells 200 tickets per week. The price elasticity of demand is −2. If the ticket price is cut by 5%, how many tickets Q will it sell per week?

Q1 = 200E = −2%ΔP = −5%
Q = tickets
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 4%, the quantity demanded rises by 10%. Find the price elasticity of demand E.

%ΔP = −4%%ΔQ = +10%
E =
3.Medium
QPD1 000€10Q2​P2​ (+15%)ΔR = ?

A product sells 1 000 units per month at €10. Its price elasticity of demand is −0.6. The firm changes the price by +15%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €10Q1 = 1 000E = −0.6%ΔP = +15%
ΔR = €
4.Medium
QPD200€2.00120€2.50

When the price of a ticket changes from €2.00 to €2.50, weekly sales change from 200 to 120. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €2.00P2 = €2.50Q1 = 200Q2 = 120
E =
5.Hard
QPDQP = ?

The demand for a product is Q = 800 − 10P, with P in euros. At which price P is total revenue as large as possible?

Q = 800 − 10P
P = €
6.Hard
QPD2 000€10Q = ?€9.00

Demand for a product has a constant price elasticity of −0.8, so Q = A·P^−0.8. At a price of €10, 2 000 units are sold. How many units Q are sold at a price of €9.00?

E = −0.8P1 = €10Q1 = 2 000P2 = €9.00
Q = units

Answer key

  1. 1. Q = 220 tickets
  2. 2. E = −2.5
  3. 3. ΔR = 465 €
  4. 4. E = −2.25
  5. 5. P = 40 €
  6. 6. Q = 2176 units

Full step-by-step solutions: practise this topic on examproblems.com.