Which of the following best explains what happens when consumers think the economy is struggling? 1.people spend more, businesses produce less, and unemployment rises. 2.people spend more, businesses produce a lot, and unemployment is low. 3.people spend less, businesses produce too much, and unemployment is low. 4.people spend less, businesses produce less, and unemployment rises.

The correct answer is: "4"

By consumer behavior we understand all those internal and external activities of an individual or group of individuals directed towards the satisfaction of their needs. This behavior starts from the existence of a lack, the recognition of a need, the search for satisfaction alternatives, purchase decision and the subsequent evaluation (before, during and after) Consumer behavior is the exchange of goods between individuals groups e companies, to meet their needs.

It is clear that when an economic problem is perceived in society, consumers analyze each purchase in depth, substitute products, or stop other consumers.

A clear example was seen during the Great Depression, people were afraid to spend. Companies were reluctant to hire workers because they did not expect any increase in sales, especially in key sectors of the economy, such as the automotive industry.

D on ED 2020

Explanation:

4. People spend less, businesses produce less, and unemployed rises.