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? 1. 2. 3. 4.