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 20%, the quantity demanded rises by 4%. Find the price elasticity of demand E.

%ΔP = −20%%ΔQ = +4%
E =
2.Easy
ticket price+10%tickets per week?400 → QE = −1.5

A cinema sells 400 tickets per week. The price elasticity of demand is −1.5. If the ticket price rises by 10%, how many tickets Q will it sell per week?

Q1 = 400E = −1.5%ΔP = +10%
Q = tickets
3.Medium
QPD1 000€10Q2​P2​ (+5%)ΔR = ?

A product sells 1 000 units per month at €10. Its price elasticity of demand is −2. The firm changes the price by +5%. Assuming %ΔQ = E·%ΔP, by how much ΔR does monthly revenue change?

P1 = €10Q1 = 1 000E = −2%ΔP = +5%
ΔR = €
4.Medium
QPD1000€15.001210€11.00

When the price of a ticket changes from €15.00 to €11.00, weekly sales change from 1000 to 1210. Use the midpoint (arc) method to find the price elasticity of demand E.

P1 = €15.00P2 = €11.00Q1 = 1000Q2 = 1210
E =
5.Hard
QPDQ€15

The demand for a product is Q = 400 − 8P, with P in euros. Find the price elasticity of demand E at a price of €15.

Q = 400 − 8PP = €15
E =
6.Hard
QPDQP = ?

The demand for a product is Q = 400 − 8P, with P in euros. At which price P is total revenue as large as possible?

Q = 400 − 8P
P = €

Answer key

  1. 1. E = −0.2
  2. 2. Q = 340 tickets
  3. 3. ΔR = −550 €
  4. 4. E = −0.6176
  5. 5. E = −0.4286
  6. 6. P = 25 €

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