When the economy slows, families stop spending money on things they don't need. Which of a following is a likely result during times like these?

the cost of luxury items like jewelry increases

the supply of basic goods like food goes down

the supply of luxury items like jewelry increases

the cost of basic goods like food goes down

Question

Social Studies

Piper Leblanc

5 April, 14:33

When the economy slows, families stop spending money on things they don't need. Which of a following is a likely result during times like these?

the cost of luxury items like jewelry increases

the supply of basic goods like food goes down

the supply of luxury items like jewelry increases

the cost of basic goods like food goes down

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Answers (1)

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Smarty · Answer 1

C. The cost of basic goods like food goes down

As the economy slows, the demand for things goes down, therefore families spend less money on things they don't need. The supply will still likely be the same, and therefore to drive up sales to sell produce which is likely to go off, sellers will lessen the price of basic goods like food to generate sales, to be competitive in the market place. Luxury items are unlikely to change in cost or supply, those are items which people are less likely to purchase, but it doesn't necessarily mean that the supply will increase.