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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Madonna

13 days 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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