For Individuals For Educators

ExpertMinds

Ace your certifications with Practice Exams and AI assistance.

Browse Exams
For Educators
Blog

Privacy Policy
Terms of Service
Cookie Policy
Support

AWS SAA Exam Prep
PMI PMP Exam Prep
CPA Exam Prep
GCP PCA Exam Prep

Practice ACCA ACCA BT — Business & Technology Practice Exam 1Question 03

Easy2 marksMultiple Choice

Syllabus A: The business organisation and its external environmentSection ASyllabus AMicroeconomics

ACCA · Question 03 · Syllabus A: The business organisation and its external environment

BioCure Ltd manufactures a highly specialized, patented drug for a rare genetic disorder. There are currently no alternative treatments available on the market. How would the price elasticity of demand (PED) for this drug most likely be described?

Answer options:

Perfectly elastic

Highly elastic

Highly inelastic

Unitary elastic

How to approach this question

Consider the availability of substitutes and the necessity of the product. How will consumers react to a price increase?

Full Answer

C.Highly inelastic✓ Correct

Price Elasticity of Demand measures how sensitive quantity demanded is to a change in price. Necessities with no substitutes (like patented life-saving drugs) have highly inelastic demand.

Common mistakes

Getting elastic and inelastic mixed up. Remember: Inelastic = Insensitive to price.

Question 02 All questions Question 04

Practice the full ACCA BT — Business & Technology Practice Exam 1

52 questions · hints · full answers · grading

More questions from this exam

Q01A highly vocal but underfunded local community group is actively opposing the construction of a n...Medium Q02CloudNet Inc., a global data storage provider, is forced to restructure its server network due to...Medium Q04In the context of Porter's Five Forces, which of the following scenarios best illustrates a high ...Medium Q05AgriGrow is an organization owned entirely by the farmers who supply it with raw wheat. The organ...Easy Q06A modern tech firm operates as a Decentralized Autonomous Organization (DAO). Teams are formed dy...Medium

View all 52 questions →