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CIMAPRA17-BA1-1 Exam - Topic 1 Question 126 Discussion

Miss Ruby designs and makes large ornaments for grand buildings. She is informed that her range of candle sticks have a price elasticity of-1.2Which of the following plans would be most appropriate?
A) Produce more candlesticks
B) Create more ornate candlesticks which have a higher cost per product
C) Run an expensive ad campaign in an interior design magazine
D) Increase the price of candle sticks

CIMAPRA17-BA1-1 Exam - Topic 1 Question 126 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 126
Topic #: 1
[All CIMAPRA17-BA1-1 Questions]

Miss Ruby designs and makes large ornaments for grand buildings. She is informed that her range of candle sticks have a price elasticity of-1.2

Which of the following plans would be most appropriate?

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Suggested Answer: A

by Lanie at May 13, 2026, 07:36 PM

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Xochitl
10 hours ago
True, but raising prices could hurt sales.
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Reuben
6 days ago
I think option D is risky. Price elasticity is negative.
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Ira
11 days ago
An ad campaign seems risky with that elasticity.
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Cathern
16 days ago
Higher cost for ornate candlesticks could attract more buyers!
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Taryn
21 days ago
Wait, why would increasing the price be a good idea?
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Altha
26 days ago
Totally agree, producing more candlesticks makes sense!
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Martha
1 month ago
Price elasticity of -1.2 means demand is elastic.
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Moon
1 month ago
An ad campaign sounds risky, but it could attract new customers!
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Gianna
1 month ago
Wait, why would increasing the price be a good idea?
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Kaitlyn
2 months ago
I think creating more ornate ones could work, higher quality!
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Carmelina
2 months ago
Totally agree, producing more candlesticks might not help!
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Alease
2 months ago
Price elasticity of -1.2 means demand is elastic.
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Cristen
2 months ago
Running an ad campaign sounds appealing, but I wonder if the cost would outweigh the benefits given the elasticity.
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Karl
2 months ago
I'm not entirely sure, but creating more ornate candlesticks could attract a different market segment. It might be risky though.
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Pauline
2 months ago
I feel like we practiced a similar question where increasing price led to a drop in sales. So, maybe option D isn't the best choice here.
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Madonna
4 months ago
I remember discussing price elasticity in class, and I think a value of -1.2 means demand is elastic, so increasing the price might not be a good idea.
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