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CIMAPRA17-BA1-1 Exam - Topic 4 Question 102 Discussion

The average price of recorded music CDs has been declining for several years. Which of the following changes in market conditions would NOT be a cause of this?
A) Availability of new cheaper substitutes such as downloads
B) Increased competition due to entry to the market by supermarket and internet sellers of CDs
C) Decline in the number of CD shops due to bankruptcy and closure
D) Growth in popularity of alternative goods such as mobile phones and video games

CIMAPRA17-BA1-1 Exam - Topic 4 Question 102 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 102
Topic #: 4
[All CIMAPRA17-BA1-1 Questions]

The average price of recorded music CDs has been declining for several years. Which of the following changes in market conditions would NOT be a cause of this?

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Suggested Answer: A

by Ria at Oct 19, 2024, 03:34 PM

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Sage
9 months ago
I disagree, the popularity of video games has nothing to do with CDs.
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Desiree
10 months ago
Surprised that mobile phones affect CD prices so much!
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Graciela
10 months ago
Isn't the decline in CD shops just a sign of the times?
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Tenesha
10 months ago
I think competition from supermarkets is a big factor too.
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Mollie
10 months ago
CDs are definitely cheaper now, thanks to downloads.
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Crista
10 months ago
I feel like the rise of mobile phones and video games could distract people from buying CDs, but I'm not sure if that’s a direct cause of price decline.
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Gianna
11 months ago
Increased competition from supermarkets and online sellers seems like it would drive prices down, so I guess that one is a cause too.
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Rusty
11 months ago
I'm a bit unsure about the impact of CD shop closures. I remember practicing a question about market supply and demand, but I can't recall if that directly affects prices.
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Clay
11 months ago
I think the decline in CD prices is definitely linked to cheaper substitutes like downloads, so that option seems like a clear cause.
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Paz
11 months ago
I think the answer is D, growth in popularity of alternative goods like mobile phones and video games. That would not directly impact the price of CDs, unlike the other options which would increase competition and supply.
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Timothy
11 months ago
I'm a bit confused by this question. All of the options seem like they could lead to declining CD prices. I'll have to review my notes and try to think through the logic here.
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Alisha
11 months ago
Okay, let me see if I can break this down. The question is asking which change in market conditions would NOT be a cause of declining CD prices. So I need to identify the option that doesn't fit with the others. I'm leaning towards B, increased competition from supermarkets and internet sellers, since that should drive prices down.
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Hobert
11 months ago
Hmm, I'm not sure about this one. The options all seem like they could potentially contribute to declining CD prices. I'll have to think this through carefully.
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Tarra
11 months ago
This question seems straightforward. I think the answer is C - decline in the number of CD shops due to bankruptcy and closure. That would not be a cause of declining CD prices, since fewer sellers should lead to higher prices.
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Angella
1 year ago
D is the answer, obviously. I mean, who even listens to CDs anymore when you can stream everything on your phone? The music industry needs to adapt or it's going to become completely obsolete.
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Audry
1 year ago
You know, the decline in CD prices reminds me of the time when I tried to sell my old CD collection at a garage sale. No one wanted them, and I ended up giving most of them away for pennies. Times sure have changed!
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Celestina
1 year ago
C) Decline in the number of CD shops due to bankruptcy and closure
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Noah
1 year ago
B) Increased competition due to entry to the market by supermarket and internet sellers of CDs
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Belen
1 year ago
A) Availability of new cheaper substitutes such as downloads
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Rodolfo
1 year ago
Haha, the correct answer is clearly A. Who buys CDs these days when you can just download music for cheap or even free? The music industry is really struggling to keep up with the times.
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Asuncion
1 year ago
C) Decline in the number of CD shops due to bankruptcy and closure
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Leandro
1 year ago
B) Increased competition due to entry to the market by supermarket and internet sellers of CDs
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Julio
1 year ago
A) Availability of new cheaper substitutes such as downloads
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Jerry
1 year ago
I think B is the correct answer. Increased competition from supermarket and internet sellers would definitely drive down the prices of CDs.
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Maddie
1 year ago
Option D seems like the most reasonable answer. Growth in popularity of alternative goods like mobile phones and video games would likely lead to a decline in demand for music CDs, and hence lower prices.
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Lili
1 year ago
I believe the availability of cheaper substitutes like downloads would NOT be a cause.
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Xenia
1 year ago
I agree with Genevieve, but I also think the growth in popularity of other goods could be a factor.
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Genevieve
1 year ago
I think the decline in CD shops could be a cause.
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