Elasticity of Demand Worksheet
| PRICE ELASTICITY OF DEMAND | % change in Q demand % change in price |
| PERCENTAGE CHANGE | new number-old number X 100
average |
| Revenue | Price X Quantity |
Use the formula above to calculate values of price elasticity of demand for all the situations below. Make sure to show your calculations.
| Price | Quantity | % change in quantity demanded | % change in price | Elasticity of Demand | Revenue | |||
| Initial | New | Initial | New |
|
|
|
Initial | New |
| 30 | 35 | 90 | 30 | |||||
| 50 | 80 | 110 | 80 | |||||
| 210 | 230 | 70 | 54 | |||||
| 60 | 85 | 140 | 125 |
In each case identify whether you would describe it as elastic / unit elastic / inelastic
1. 2. 3. 4.
Has revenue increased or decreased in each case?
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