CIMAPRA17-BA1-1 Exam - Topic 1 Question 65 Discussion

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

Question #: 65
Topic #: 1

Which of the following sets of conditions will lead to greater stability (or convergence) of prices in the Cobweb model (or Cobweb theorem)?

APrice elastic demand, price inelastic supply

BPrice inelastic demand, price elastic supply

CPrice elastic demand, price elastic supply

DPrice inelastic demand, price inelastic supply

Show Suggested Answer

Suggested Answer: A

by Barbra at Feb 07, 2023, 10:16 PM

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Silvana

7 months ago

I agree with D, both inelastic conditions should keep things steady.

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Candra

7 months ago

Wait, isn't it surprising how inelastic demand can stabilize prices?

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Marquetta

7 months ago

Not so sure about A, sounds risky to me.

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Verlene

7 months ago

I think A is the right choice, more elastic demand helps!

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Iola

7 months ago

Definitely D, that combo leads to stability.

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Rosio

8 months ago

I’m confused about the elasticities. I thought price elastic supply could lead to instability, so maybe option B is less likely?

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Nu

8 months ago

I practiced a similar question, and I think price inelastic demand and supply would stabilize prices, leaning towards option D again.

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Kenda

8 months ago

I'm not entirely sure, but I feel like price elastic demand might cause more fluctuations. Could it be option A?

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Mayra

8 months ago

I think I remember that price inelastic demand and supply can lead to more stability, so maybe option D?

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Diane

8 months ago

This looks like a one-sample t-test to me. We have a sample mean and standard deviation, and we need to test if the mean is significantly different from the target of 15 pots per day.

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Marylin

8 months ago

If I remember correctly, I saw a similar question in practice where the ENIs were said to remain after the instance is gone. Maybe that's the answer?

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The Brokered Authentication pattern sounds interesting, but I'm worried about the performance implications of introducing an additional service just for authentication. I'd want to make sure that doesn't create a bottleneck.

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Olive

8 months ago

This question seems straightforward, but I want to make sure I understand the key points about what needs to change in a DevOps environment compared to a traditional one.

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Vincenza

1 year ago

Haha, the Cobweb model? Sounds like something straight out of a spider's dream! I'll just go with C and hope for the best.

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Paola

11 months ago

User 4: Let's hope for the best outcome then!

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Chu

11 months ago

User 3: Yeah, I agree. Price elastic demand and supply should help.

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Amira

12 months ago

User 2: I know right! I think C is the best option for stability.

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Elke

12 months ago

User 1: Haha, the Cobweb model? Sounds interesting!

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Krystina

1 year ago

This is a tough one. I'm leaning towards D, but I'm not totally confident. Guess I'll have to study the Cobweb model a bit more.

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Tyra

12 months ago

C) Price elastic demand, price elastic supply

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Wilbert

12 months ago

B) Price inelastic demand, price elastic supply

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Owen

1 year ago

A) Price elastic demand, price inelastic supply

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Domonique

1 year ago

I'm not sure about this one. I guess C might work, but I'm really just taking a shot in the dark here.

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Ciara

11 months ago

I don't think D would lead to convergence of prices.

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Kathrine

11 months ago

D) Price inelastic demand, price inelastic supply

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Cecilia

11 months ago

I agree, C might be the best option for stability.

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Gearldine

11 months ago

C) Price elastic demand, price elastic supply

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Shaniqua

11 months ago

I'm not sure, but maybe B would work better.

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Hui

11 months ago

B) Price inelastic demand, price elastic supply

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Karol

11 months ago

I think A could lead to greater stability.

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Alyce

11 months ago

A) Price elastic demand, price inelastic supply

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Mona

11 months ago

C) Price elastic demand, price elastic supply

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Scot

12 months ago

Hmm, that might also lead to stability in prices.

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Maynard

1 year ago

B) Price inelastic demand, price elastic supply

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Fidelia

1 year ago

That could work, but let's consider the other options too.

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Shaunna

1 year ago

A) Price elastic demand, price inelastic supply

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Mona

1 year ago

Hmm, I think option B is the correct answer. Price inelastic demand and price elastic supply would lead to greater stability in the Cobweb model.

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Youlanda

1 year ago

I'm not sure about that. I think it might be A) Price elastic demand, price inelastic supply. If demand is elastic, but supply is inelastic, prices will tend to stabilize over time.

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Tammi

1 year ago

I agree with Judy. When both demand and supply are elastic, any fluctuations in prices will lead to adjustments that bring the market back to equilibrium.

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Judy

1 year ago

I think the answer is C) Price elastic demand, price elastic supply.

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