During a recession, firms that sell luxury items are likely to have _____ sales, and firms that sell budget items might have _____ sales.

Question

Quizplus · Accepted Answer

During a recession, consumers typically reduce spending on luxury items, leading to lower sales for firms selling these products. Conversely, firms selling budget or essential items may see stable or increased sales as consumers shift to more affordable options.

During a Recession, Firms That Sell Luxury Items Are Likely