Consumers spend a lot more time searching for good bargains during recessions be

Question

Consumers spend a lot more time searching for good bargains during recessions because:

A. goods are more expensive during recessions and hence expected benefits of a search are higher.

B. in recessions, many individuals are out of work, which lowers their opportunity cost of time.

C. goods are more expensive during recessions and hence expected benefits of a search are higher and in recessions, many individuals are out of work, which lowers their opportunity cost of time.

D. None of the statements is correct.

Explanation / Answer

In recessions, many individuals are out of work which lowers their opportunity cost of time.

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