In a weakening economy, you might expect producers to:
A) lower wages to increase quantity demand for their output.
B) lower prices to increase quantity demand for their output.
C) increase prices to increase quantity demand for their output.
D) lower prices to reduce quantity demand for their output.
E) raise wages to hire more productive workers.

Question

Quizplus · Accepted Answer

In a weakening economy, consumers have less disposable income and are more price-sensitive. Therefore, producers can increase demand for their products by lowering prices. This strategy can help them maintain or increase their market share during tough economic times.

In a Weakening Economy, You Might Expect Producers To