28.0k views
0 votes
The state of the economy has a significant effect on demand for which type of commodities?

User Petran
by
7.8k points

1 Answer

5 votes

Answer:

Non-essential commodities

Step-by-step explanation:

When the economy is in bad shape, people will usually restrict their expenses to only the essential items they really need: food, clothes, housing, transportation. Even within those categories, they'll make more economical choices (for example ground beef instead of a t-bone steak).

When the economic situation is better, they will improve their selection and choices in the 4 categories mentioned, and will also spend on luxury and non-essential commodities, like entertainment (movies), a second car, jewels, and so on.

User Marc Schulder
by
8.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.