CIMAPRA17-BA1-1 Exam - Topic 1 Question 20 Discussion

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

Question #: 20
Topic #: 1

A business sells 10,000 units of its product pet month at a unit price of $10 It reduces the pnce to $88,000 per unit As a result its total reviewed $88,000 per month. What is the price elasticity of demand for this product?

A+1.87

B+0.6

C-2

D-0.5

Show Suggested Answer

Suggested Answer: D

by Beatriz at May 03, 2022, 08:31 AM

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Norah

10 months ago

I’m not sure about those calculations, seems off to me.

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Kattie

10 months ago

Totally agree, it’s all about demand sensitivity!

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Lucina

11 months ago

Wait, how does lowering the price lead to lower revenue?

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Sylvie

11 months ago

Price elasticity is definitely negative here.

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Felicia

11 months ago

The original revenue was $100,000, now it's $88,000.

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Brianne

11 months ago

I'm a little confused by the wording of some of these options. I'll need to think through each one carefully to make sure I select the right answers.

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Mabelle

11 months ago

Okay, I think I've got a good handle on this. The key is to understand how the change authority should balance internal and external stakeholder needs.

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