How might department stores best protect themselves against the risk of recession?
A) Buy insurance policies that pay off when a recession occurs.
B) Stand ready to go out of business if a recession occurs.
C) Sell goods that are complements to one another.
D) Sell both substitute and complement goods.
E) Sell both normal and inferior goods.

Question

Quizplus · Accepted Answer

Selling both normal and inferior goods allows department stores to cater to different consumer spending behaviors during a recession, as consumers may shift from normal to inferior goods when their income decreases.

How Might Department Stores Best Protect Themselves Against the Risk