I have figured out the fix to this issue.
Apparently, the default xorg.conf has a line which interferes with changes in 
acceleration.

Changing the line:

Option   "SendCoreEvents" "true"

to

Option  "CorePointer"

cures the issue.

Is there any way this can be made the default?

** Changed in: xorg (Ubuntu)
Sourcepackagename: linux-meta => xorg

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Can't change pointer acceleration on MacBook trackpad
https://bugs.launchpad.net/bugs/119964
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