AICPA Exam CPA-Business 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:

AAn increase in the product price to make up lost revenue.

BA decrease in the demand for the product.

CAn increase in product supply because of increased availability.

DThat companies in the industry would experience higher economic profits.

Show Suggested 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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2 days ago

I think if consumers boycott a product, the demand will decrease.

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