Worksheet – Price Elasticity of Demand Name: Apply what you have learned during the lesson by working through the following worksheet with a partner. You are to make sure that you and your partner understand each question. 1. What is a good synonym for ‘elastic’, as the word is used in economics? 2. If you have an elastic demand response to a price change, what should you do if the price of your favorite chocolate goes down? 3. Calculate the price elasticity of demand for chocolate bars if the price goes from 200 Bz to 240 Bz, causing you to change your weekly consumption from 8 bars per week to 5. 4. Is your demand for chocolate elastic, inelastic or unit elastic with respect to price? 5. In order to be considered to have an inelastic response, how many chocolate bars could you have bought? Justify your answer. 6. If you were a shopkeeper or a manufacturer, how would you use knowledge of price elasticity of demand when setting prices for your goods?