Price elasticity of demand questionForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Price elasticity of demand questionThis topic has 3 replies, 2 voices, and was last updated 2 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts February 6, 2023 at 10:45 am #678428 guyver101ParticipantTopics: 33Replies: 28☆☆Hi, I keep going around in circles with this one.Question: If PED = 1, indicate if the statement is T/F “Total Expenditure will remain constant despite price changes”I put false, BPP book said true.The way I got False: For PED = 1, (using an example) a 10% increase in price would cause a 10% decrease in demand.A decrease in demand would decrease variable costs.I can see how a PED of 0 would lead to no change in expenditure, but not PED =1.Thanks February 6, 2023 at 4:35 pm #678441 John MoffatKeymasterTopics: 57Replies: 54636☆☆☆☆☆You are correct, and the BPP answer is wrong! February 6, 2023 at 4:41 pm #678444 guyver101ParticipantTopics: 33Replies: 28☆☆Thanks. I’ll send an erratum via their platform February 7, 2023 at 7:27 am #678457 John MoffatKeymasterTopics: 57Replies: 54636☆☆☆☆☆Great 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)The topic ‘Price elasticity of demand question’ is closed to new replies.