During recession, the market demand curve which is a function of marketing expenditure ________.
A) shifts upward
B) becomes vertical
C) remains unaffected
D) shifts downward
E) slopes downward

Question

Quizplus · Accepted Answer

During recession, consumers tend to reduce their spending, which leads to a decrease in demand. As a result, the market demand curve shifts downward, indicating a decrease in the quantity of goods and services demanded at any given price level. The marketing expenditure may still influence the demand, but its impact would be less significant during a recession as consumers are more price-sensitive and less responsive to marketing messages.

During Recession, the Market Demand Curve Which Is a Function