Day: June 24, 2025

Accounting Multiple Choice Question – 24 June 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex is a Staffordshire shopkeeper who finds that if he sets the price of a particular product called X at £9.00 per unit, he sells on average, 150 units of the product per month.

However, at a price of £10.00 per unit for X, he sells an average of 110 units of that product per month.

The price elasticity of demand for the product called X is?

Select ONE answer:

  1. – 0.42
  2. – 2.40
  3. – 0.27
  4. – 0.11

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 2

  1. Not correct
  2. Correct == > Proportional change in quantity demanded = 40/150 × 100 = -26.6%. Proportional change in price = 1/9 × 100 = 11.1%. Therefore PED = -26.6/11.1 = -2.40
  3. Not correct
  4. Not correct

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