During an economic recession, which product category usually faces the earliest decline in demand?
Correct answer: C. Luxury automobiles
- A. Essential medicines
- B. Basic food items
- C. Luxury automobiles
- D. Household electricity
Explanation
Luxury automobiles are postponable purchases, so consumers often delay them when income confidence falls. Essential goods usually experience more stable demand during a recession.
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About The Business Environment
Business environment includes the internal factors and external forces that affect business decisions, performance and survival. It covers customers, competitors, suppliers, government, technology, economic conditions, society, law and ecology, including the distinction between the microenvironment and the wider PESTLE environment.
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