As the only store to design and sell curtains in the suburb of Oakland, the merchandise sold by Plush Parade is overpriced. Noticing this, Diana's Draperies sets up a showroom in the same suburb, reasoning that with lower prices, they would be able to attract more customers. Diana's Draperies is Plush Parade's .
A. partner
B. distributor
C. competitor
D. processor
E. franchiser

(C) Competitor

Explanation:

  According to the given question, Diana's Draperies is basically plush parade's competitors as Diana's Draperies noticing the business of Plush Parade that they designing and then selling the curtains to the customers.  

So, they started the same business of Curtains designing and by using the business strategy they start selling the same product at lower price for the purpose of attracting the customers or users in the market.

 The competitors is the rival of each other in the business and they usually offering the same products in the market for attracting the consumers in low price for establishing their business.

 Therefore, Option (C) is correct answer.

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