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

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 126
Topic #: 1

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?

AProduce more candlesticks

BCreate more ornate candlesticks which have a higher cost per product

CRun an expensive ad campaign in an interior design magazine

DIncrease the price of candle sticks

Show Suggested Answer

Suggested Answer: A

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

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Alease

10 hours ago

Price elasticity of -1.2 means demand is elastic.

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Cristen

6 days 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

11 days 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

16 days 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

2 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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