A home furniture store, David's Furnishings, lowers its prices below those of their competitors, Ada's Home Store. A price war then ensues. What must the response of Ada's Home Store have been in order for the price war to begin?

A.
Ada's Home Store took David's Furnishings to court in an attempt to make them raise their prices back up.

B.
Ada's Home Store started a marketing campaign against David's Furnishings and their lower quality.

C.
Ada's Home Store raised prices to show consumers that their products are better.

D.
Ada's Home Store lowered prices even lower than David's Furnishings did.
D. Ada's Home Store lowered prices even lower than David's Furnishings did.
D. Ada's Home Store lowered prices even lower than David's Furnishings did.
The correct response of Ada's Home Store in order for the price war to begin would be option D: Ada's Home Store lowered prices even lower than David's Furnishings did.
In a price war scenario, when one company reduces its prices to attract customers, the competitor's response is to lower their prices even further in order to regain the customers and maintain their market share. By lowering prices further, Ada's Home Store would be directly competing with David's Furnishings and intensifying the price war. This competitive strategy aims to undercut the competitor's prices and lure customers away from them.
To summarize, the response of Ada's Home Store to initiate a price war would involve lowering their prices even more than David's Furnishings.