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CIMAPRA17-BA1-1 Exam - Topic 2 Question 124 Discussion

A shift in the supply curve for a good will have the biggest effect on the market price when the demand curve for the good
B) is highly price inelastic
A) is highly price elastic
C) has unit price elasticity
D) is perfectly price elastic

CIMAPRA17-BA1-1 Exam - Topic 2 Question 124 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 124
Topic #: 2
[All CIMAPRA17-BA1-1 Questions]

A shift in the supply curve for a good will have the biggest effect on the market price when the demand curve for the good

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Suggested Answer: B

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Rueben
10 hours ago
Definitely B, inelastic demand means price changes affect revenue more.
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Vincenza
6 days ago
Not sure about that, can we really say inelastic is always the biggest effect?
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Lanie
11 days ago
Totally with B, inelastic demand really amplifies price changes!
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Roselle
16 days ago
Wait, isn't D a bit extreme? Perfectly elastic sounds unrealistic.
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Ashley
2 months ago
I think A makes sense too, elastic demand can really shift prices!
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Ryan
2 months ago
Definitely B, inelastic demand means price changes impact revenue more.
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Wava
3 months ago
I recall discussing unit price elasticity in class, but I can't remember how it affects shifts in supply. I guess it could be C, but I'm not confident.
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Corinne
3 months ago
I feel like I read that perfectly elastic demand means any price change leads to infinite changes in quantity. So maybe D is the right choice?
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Glory
3 months ago
I'm not entirely sure, but I remember a practice question where a shift in supply had a bigger impact when demand was elastic. Could it be A?
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Abraham
3 months ago
I think the answer might be B, since inelastic demand means consumers won't change their quantity much with price changes.
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