In 201X the market for a crop suffered high prices.

Vendor: CIMA
Product: BA1
Update on: Jul 28, 2025
Questions: 468

CIMA BA1 Question Answer

In 201X the market for a crop suffered high prices. According to cobweb theory what was likely to have happened in the following year?

Price will stay high as farmers restrict supply to make extra profits

Price will fall because the high price in 201X gave an incentive to farmers to plant more and flood the market with extra supply

Price will fall as consumers find cheaper substitutes to the high-priced crop

Price will rise further as buyers stockpile the new harvest to avoid suffering higher prices for a second year

CIMA BA1 Summary

Price: $52.5 ~~$149.99~~