Which of the following statements is incorrect?
A) In a recession, normal goods manufacturers are expected to have reductions in the demand.
B) In a recession, inferior goods manufacturers are not expected to have reductions in the demand.
C) All producers are going to be negatively affected in a recession.
D) None of the above is correct.

Question

Quizplus · Accepted Answer

Statement C is incorrect because not all producers are negatively affected in a recession. For example, manufacturers of inferior goods (goods for which demand increases when income decreases) may not see a reduction in demand during a recession.

Which of the Following Statements Is Incorrect