Certified Professional Public Buyer (CPPB) Practice Test

What is a characteristic of a stable market?

1. Presence of seasonal products

2. Off-the-shelf commodities are produced

3. Unpredictable price fluctuations

4. Limited availability of goods

The correct answer is: Off-the-shelf commodities are produced

A stable market is typically characterized by consistent supply and demand dynamics, which facilitates predictable pricing and enhances the ability for businesses and consumers to plan effectively. The production of off-the-shelf commodities signifies that products are readily available and consistently manufactured. This stability in availability contributes to a predictable market environment, wherein buyers can easily source necessary goods without facing surprises in either supply or pricing. Seasonal products, while common in some markets, contribute to variability rather than stability, as their availability can fluctuate throughout the year. Unpredictable price fluctuations are characteristic of unstable markets where supply and demand can shift dramatically, leading to uncertainty. Lastly, limited availability of goods suggests a constrained supply, which can often drive prices up and lead to market instability. Therefore, the production of off-the-shelf commodities represents a hallmark of a stable market environment, where products are regularly available, contributing to predictable pricing and planning.