Question

Which of the following is most likely to happen if families in a community stop spending as much money at the local grocery store?
Farmers would produce more crops to increase supply.

The grocery store would lay off several employees'.

The grocery store would invest in more displays.

The families would have to start growing their own food. ​

Answer 1

The grocery store would lay off several employees is most likely to happen if families in a community stop spending as much money at the local grocery store.

Explanation:

If the consumer spending patterns decreases, the grocery store will earn less profit and this will affect worker’s salaries and jobs. Workers may be laid off work (retrenched) and in worse case scenarios, the business may have to close permanently or move to a new location.

In a much larger scale, the sudden decrease of consumer spending causes a rise in unemployment and increases both uncontrolled inflation and uncontrolled deflation. The decrease in consumer spending is deflation and it also has a negative impact on the economy and to individuals as well.