In a competitive market, a furniture company decides to use cheaper materials to decrease production costs and pass on the savin
gs. This is an example of following a federal regulation. lowering prices for customers. reducing the risk for consumers. creating a new or better product.
<u>In a competitive market, it is common for companies to try and offer a cheaper product. In most situations, being cheaper means the product has more chances of attracting customers when compared to expensive ones. A way to make a cheaper product is by decreasing production costs using cheaper materials, as is mentioned in the question.</u> Of course, the product will have its price lowered, but its quality may also decrease with the use of a cheaper material. Anyway, the situation described is an example of lowering prices for customers.
