What is most likely to happen 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, prices of goods and services increase. This leads to consumers shifting their purchases to lower-priced alternatives, including lower-priced foods.

What Is Most Likely to Happen When Inflation Increases