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 rises by 5%, the quantity demanded falls by 12.5%. Find the price elasticity of demand E.

%ΔP = +5%%ΔQ = −12.5%
E =
2.Easy
QPDQ1​P1​Q2​P2​

When the price of a product falls by 5%, the quantity demanded rises by 4%. Find the price elasticity of demand E.

%ΔP = −5%%ΔQ = +4%
E =
3.Medium
QPD1200€4.002700€1.50

When the price of a ticket changes from €4.00 to €1.50, weekly sales change from 1200 to 2700. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €4.00P2 = €1.50Q1 = 1200Q2 = 2700
E =
4.Medium
QPD2 500€8Q2​P2​ (−10%)ΔR = ?

A product sells 2 500 units per month at €8. Its price elasticity of demand is −0.5. The firm changes the price by −10%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €8Q1 = 2 500E = −0.5%ΔP = −10%
ΔR = €
5.Hard
QPD10 000€5Q = ?€3.75

Demand for a product has a constant price elasticity of −2, so Q = A·P^−2. At a price of €5, 10 000 units are sold. How many units Q are sold at a price of €3.75?

E = −2P1 = €5Q1 = 10 000P2 = €3.75
Q = units
6.Hard
QPDQ€8

The demand for a product is Q = 80 − 2P, with P in euros. Find the price elasticity of demand E at a price of €8.

Q = 80 − 2PP = €8
E =

Answer key

  1. 1. E = −2.5
  2. 2. E = −0.8
  3. 3. E = −0.8462
  4. 4. ΔR = −1100 €
  5. 5. Q = 17778 units
  6. 6. E = −0.25

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