The purchases of which of the following goods is most sensitive to the business cycle?
A) a DVD player
B) a hamburger
C) a sweater
D) a pencil

Question

Quizplus · Accepted Answer

A DVD player is a luxury or non-essential good, making its purchase more sensitive to changes in the business cycle compared to basic or essential items like food (a hamburger), clothing (a sweater), or stationery (a pencil), which people tend to buy regardless of economic conditions.

The Purchases of Which of the Following Goods Is Most