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AICPA CPA-Business Exam - Topic 3 Question 113 Discussion

If a group of consumers decide to boycott a particular product, the expected result would be:
B) A decrease in the demand for the product.
A) An increase in the product price to make up lost revenue.
C) An increase in product supply because of increased availability.
D) That companies in the industry would experience higher economic profits.

AICPA CPA-Business Exam - Topic 3 Question 113 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 113
Topic #: 3
[All CPA-Business Questions]

If a group of consumers decide to boycott a particular product, the expected result would be:

Show Suggested Answer Hide Answer
Suggested Answer: B

Choice 'b' is correct. A consumer boycott will decrease demand for the product being boycotted.

Choice 'a' is incorrect. Increasing price will further reduce the quantity demanded. The effect on revenue is uncertain.

Choice 'c' is incorrect. Supply will be unaffected by a boycott.

Choice 'd' is incorrect. A boycott of a particular product will reduce the overall profits of the industry.


by Solange at Jul 05, 2025, 10:19 AM

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Maxima
7 months ago
I thought boycotts could sometimes boost sales for alternatives?
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Juliana
7 months ago
Wait, how does that lead to higher prices?
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Alyce
7 months ago
Totally agree, B is the right choice!
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Louann
7 months ago
Definitely not C, that makes no sense.
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Ilene
7 months ago
Boycotts usually lead to decreased demand.
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Jolanda
8 months ago
I’m leaning towards A because I think companies might raise prices to compensate for lost sales, but I could be wrong.
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Beatriz
8 months ago
I feel like the answer has to be B, but what if the company just increases supply to try and meet the demand elsewhere?
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Ben
8 months ago
I'm not entirely sure, but I remember a practice question where a similar scenario led to increased prices. Could that happen here too?
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Earnestine
8 months ago
I think a boycott would lead to a decrease in demand for the product, right? That seems to make sense based on what we studied about consumer behavior.
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Ammie
9 months ago
I think the key here is understanding how a boycott affects the market. If demand goes down, that should put downward pressure on price, not upward. The other options don't seem to logically follow from a boycott. I'll go with B.
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Catalina
9 months ago
Wait, I'm confused. Wouldn't the company try to make up for lost revenue by raising the price? Or would that just make the boycott worse? Hmm, I need to re-read the question more carefully.
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Emerson
9 months ago
Okay, I've got this. A boycott means fewer consumers buying the product, so the demand will decrease. That should lead to a lower price, not an increase. I'll go with option B.
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Jennie
9 months ago
Hmm, I'm a little unsure about this one. I know a boycott reduces demand, but I'm not sure if that automatically leads to a decrease in price or something else. I'll have to think it through step-by-step.
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Dean
9 months ago
This seems like a straightforward question about the impact of a boycott on the market. I'll think through the options carefully and choose the one that best matches the expected result.
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Chantell
11 months ago
B) for sure. Boycotts are no joke - companies take them seriously and feel the impact on their sales.
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Toshia
11 months ago
That makes sense. So, the expected result would be a decrease in demand for the product.
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Naomi
11 months ago
Haha, C) Increase in product supply? Yeah, right. That's about as likely as the company throwing a celebratory party for the boycott.
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Marshall
10 months ago
B) A decrease in the demand for the product.
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Ollie
10 months ago
A) An increase in the product price to make up lost revenue.
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Twanna
11 months ago
I don't think so. If demand goes down, they might have to lower prices to attract customers.
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Willard
12 months ago
But wouldn't the companies try to increase the price to make up for lost revenue?
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Norah
12 months ago
I'm going with B as well. Boycotts are a powerful consumer tool to influence market forces.
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Layla
11 months ago
It's true, companies often have to respond to consumer actions like boycotts.
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Leonor
11 months ago
I agree, boycotting can definitely decrease demand for a product.
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Stevie
1 year ago
Definitely B) A decrease in the demand for the product. Boycotts always hit the company's bottom line.
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Cletus
11 months ago
Boycotts can definitely make a difference in the market.
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William
11 months ago
It's true, companies feel the effects when consumers stop buying their products.
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Judy
11 months ago
I agree, boycotting really does impact the demand for a product.
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Toshia
1 year ago
Yeah, I agree. Less demand usually leads to lower prices.
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Twanna
1 year ago
I think if consumers boycott a product, the demand will decrease.
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