Because a company such as Boeing produces expensive durable goods (aircraft), the demand for their goods:
A)is likely to increase during recession.
B)declines when incomes in the economy are rising.
C)is consistently high, regardless of the state of the economy.
D)tends to follow the business cycle.

Question

Quizplus · Accepted Answer

The demand for Boeing's aircraft tends to follow the business cycle. During an economic expansion, airline companies are likely to purchase more aircraft to meet the growing demand for air travel, resulting in an increase in demand for Boeing's goods. Conversely, during an economic recession, airline companies may cut back on purchasing new aircraft, resulting in a decline in demand for Boeing's goods. Therefore, the demand for Boeing's goods is not consistently high, nor does it decline when incomes are rising.

Because a Company Such as Boeing Produces Expensive Durable Goods