• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

March 2026 ACCA Exams

Comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

Price elasticity of demand question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Price elasticity of demand question

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 6, 2023 at 10:45 am #678428
    guyver101
    Participant
    • Topics: 33
    • Replies: 27
    • ☆☆

    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 Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    You are correct, and the BPP answer is wrong!

    February 6, 2023 at 4:41 pm #678444
    guyver101
    Participant
    • Topics: 33
    • Replies: 27
    • ☆☆

    Thanks. I’ll send an erratum via their platform

    February 7, 2023 at 7:27 am #678457
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    Great 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Price elasticity of demand question’ is closed to new replies.

Primary Sidebar

Kaplan ACCA Free Trial

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • chrisoleary94 on Changes in group structure – examples – ACCA SBR lectures
  • luyuecui on Statement of cash flows – Example 1 (revision) – ACCA Financial Reporting (FR)
  • Abdinur on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures
  • John Moffat on The valuation of mergers and acquisitions (part 2) – ACCA (AFM) lectures
  • John Moffat on Risk and Uncertainty – Decision Trees Part 2 – ACCA Performance Management (PM)

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in