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 increases
the cost of basic goods like food goes down

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.

Answer 2

Answer: the answer is C

Explanation: