CIMA Exam CIMAPRA17-BA1-1 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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Vincenza

1 months 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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Amira

14 days ago

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

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Elke

19 days ago

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

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Krystina

2 months 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

5 days ago

C) Price elastic demand, price elastic supply

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Wilbert

10 days ago

B) Price inelastic demand, price elastic supply

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Owen

25 days ago

A) Price elastic demand, price inelastic supply

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Domonique

2 months 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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Mona

3 days ago

C) Price elastic demand, price elastic supply

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Scot

19 days ago

Hmm, that might also lead to stability in prices.

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Maynard

20 days ago

B) Price inelastic demand, price elastic supply

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Fidelia

25 days ago

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

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Shaunna

1 months ago

A) Price elastic demand, price inelastic supply

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Mona

2 months 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

2 months 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

2 months 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

2 months ago

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

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