Question

In a competitive market, a furniture company decides to use cheaper materials to decrease production costs and pass on the savings. This is an example of following a federal regulation. lowering prices for customers. reducing the risk for consumers. creating a new or better product.

Answer 1

Answer:

This is an example of:

B. lowering prices for customers.

Explanation:

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. 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.