Question

Imagine yourself as a business owner just before an economic event such as a recession or depression. What impact would a sudden lack of income have on the price of the goods you sell?

Answer 1

An economic depression is when the price of the goods in the market is decreasing. Your income will be less as the prices of the goods are low

Answer 2

An economic depression is a long-term downturn in economic activity that is more severe than an economic recession. An economic recession is the slowing of business activities during a normal business cycle whereas the depression is unusual and an extreme form of a recession.

If an economic recession or depression is coming, and a sudden lack of income is happening all over, then the price of goods you sell will probably need to drop to accomidate the lack of income people are receiving. As a business owner, you want to make sure you are creating profit for yourself but also selling the items you have and not being stuck with them during a time where no one is spending money. If you are aware of the recession or depression happening, then you are also loosing funds for your personal items that are needed.