The nominal interest rate plus the inflation rate equals the real interest rate

What is the effect on the price and quantity of wooden desks of a rise in the price of wood?

A) The equilibrium quantity of wooden desks increases and the equilibrium price falls. B) The equilibrium quantity of wooden desks increases and the equilibrium price rises. C) The equilibrium quantity of wooden desks decreases and the equilibrium price falls. D) The equilibrium quantity of wooden desks decreases and the equilibrium price rises.

"The United States has fallen behind Japan and most of Europe in terms of competitiveness." Do you agree or disagree? Why?

What will be an ideal response?