Question

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 decreases.
The cost of basic goods like food goes up.

Answer 1

Am I right with B? Or is it C?

Answer 2

what ones could you rule out?

Answer 3

I think it's D. When families stop spending money on things they don't need, it usually raises the prices for certain items available for purchase

Answer 4

why would they raise the prices if nobody are buying the products tho?

Answer 5

wouldnt they decrease

Answer 6

Wait, my mistake...

Answer 7

I would go with B

The familes are buying a bit more of the necessities to survive, so the supply for those items would decrease

Answer 8

Alright thank you

Answer 9

You're welcome C: