View all free ACCA F5 lectures >> | This lecture is based on ACCA F5 course notes, download or view on line here >> |

### Comments

### Leave a Reply

You must be logged in to post a comment.

OpenTuition.com Free resources for accountancy students

Free ACCA lectures and course notes | ACCA AAT FIA resources and forums | ACCA Global Community

fahim231 says

I am totally confused …….during the formula when he arrives at – 1 = 0 -2500b

how on earth did he manage to do 1/2500 ? when they are minus numbers ?

John Moffat says

‘He’ is me!!

If -1 = -2500b

then divide both sides by -2500, and 1/2500 = b

(You should know from school that dividing a negative number by a negative number results in a positive number)

Samoar says

I wish there was a like button

John Moffat says

If we start from 16 and demand of 100, then changing to 15.5 means that demand goes up from 100 to 200 – a percentage change of (200-100)/100 = 100%

Price goes from 16 to 15.5 which is a percentage change if (16 – 15.5)/15 = 3.33%

The formulae you wrote were wrong. It should be P2 – P1 / P1; and D2 – D1 / D1

Sakina says

hello sir, i am a bit confused with example 3 i used the formula

% change in price=(P1-P2)/P2*100

% change in demand=(Q2-Q1)/Q2*100

when i am applying this formula to the question example 3 i am getting the answer as 16 for the first one and 7.25 for the second one. And behind the book its different answers which do not match mine. i am very confused sir please reply

John Moffat says

I am not sure what to answer, because the solution at the back of the notes shows the workings.

You do not say how you managed to arrive at 16 and 7.25.

If you say how your workings were different from the answer then I will try and explain where you have gone wrong.

Sakina says

P1 is 16 P2 15.5 Q1 100 Q2 200

QD%= (200-100)/200*100=50%

PRICE%= (16-15.5)/15.5*100=3.225%

So the formula applies as PED=%QD / %PRICE

50/3.225= 16.