The Yum Yum Bubble Gum Company Rents Space in a Warehouse

Multiple Choice

The Yum Yum Bubble Gum Company rents space in a warehouse to store its inventory. The owner of the warehouse just lowered the rent he charges the Yum Yum Bubble Gum Company. Everything else equal, the rent decrease is likely to ________ Yum Yum's optimal level of inventory.

A) increase
B) decrease
C) not change
D) reduce to zero