Accounting Multiple Choice Question – 15 June 2025

The price of Big Staffie has fallen by 4% in the last quarter, whilst in the same period demand for Little Staffie where there has been no price change, has risen by 6.5%.

The cross elasticity of demand between the two products is therefore?

Select ONE answer:

1. – 1.625
2. – 0.62
3. 1.625
4. 0.62

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > +0.065/-0.04 = -1.625
2. Not correct
3. Not correct
4. Not correct

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