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Which scenario best reflects the relationship between production and demand in a recession?

asked
User Lmount
by
8.5k points

2 Answers

2 votes

Answer:

C. Car dealerships cannot sell their stock

Step-by-step explanation:

answered
User Daniel Rotter
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8.2k points
3 votes

Answer:

C. Car dealerships cannot sell their stock

There are four scenarios as following:

a.) Car dealerships have minimal overstock.

b.) Car dealerships are not restocking.

c.) Car dealerships cannot sell their stock.

d.) Car dealerships cannot obtain stock.

=> The answer is C

Step-by-step explanation:

Recession is the term used to describe the situation when a country suffer from the negative economic growth (indicated in the negative GDP growth rate).

The recession is considered the result of the economic downfall of that country, resulting in the decrease in capital inflow, slowing down the production and increasing the unemployment rate in that country. Consequently, the wage of people there would decrease, lowing their consumption. So that with lower demand and level of expense of the market, the car dealerships cannot sell their stock.

answered
User Josh Townzen
by
7.9k points

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