What would be a likely consumer response when inflation increases?
A)Consumers buy more discretionary merchandise.
B)Consumers buy fewer personal care and home entertainment products.
C)Off-price and discount retailers suffer from lower sales.
D)Consumers buy lower-priced foods.
E)Consumers buy less food.

Question

Quizplus · Accepted Answer

When inflation increases, consumers tend to be more price-sensitive and opt for lower-priced goods, including lower-priced foods. They may also cut back on discretionary spending and personal care or home entertainment products. However, off-price and discount retailers may see an increase in sales as consumers look for ways to save money.

What Would Be a Likely Consumer Response When Inflation Increases