During a 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 a recession, consumers are likely to have lower disposable income and be more price-sensitive. As a result, the market demand curve shifts downward, indicating that consumers are willing to purchase less at any given price.

During a Recession, the Market Demand Curve, Which Is a Function