Our Own High School, Al Warqa’a

Grade: 11 Worksheet in Demand - Price Elasticity of Demand

1. * When the price of a commodity is Rs.6, a person buys 10 units of it. When the price falls to

Rs.5, what will be his price elasticity of demand if the demand expands to a) 11 units, and

b) 12 units?

2. * A consumer buys 20 units of a good at Rs.10 per unit. The price elasticity of demand of this

good is (-) 1. Calculate the new quantity demanded when the price falls to Rs.8 per unit.

3. ** A consumer buys 40 units of a commodity at a price of Rs.5 per unit and the price elasticity

of the good is (1.5). Calculate the units he will buy when the price falls by 20%.

4. ** When price rises by Re.1, quantity demanded falls from 500 units to 400 units. If price

elasticity of demand is ().1, find the initial price and the new price.

5. ** At a price of Rs.20, a consumer spends Rs.160 on a good. Price elasticity of demand for that

good is (-)1. How much will he spend if the price rises to Rs.25?

6. *** The ratio of price elasticity of demand for goods X and Y is 1:1.5. When price of good X rises

by 20%, its quantity demanded falls from 100 units to 80 units. What will be the new price

of good Y when a fall in price of good X by Rs.20 leads its quantity demanded to expand

from 1000 units to 1500 units.

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Level of Difficulty Easy Average Difficult
Key * ** ***

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