Question

How does a store closure affect the economy

How does a store closure affect the economy
0 0
Add a comment Improve this question Transcribed image text
Answer #1

It depends on the size of the store. Irrespective of the size, closure of a store indicates decreased economic activity. It can be due to increased costs, decreased demands, or any other factor. Assuming a small store, the store-owner being the only labor, he/she loses income in the short run. With the store being closed, consumers who bought from that store will now decrease their spending (assuming the store sold some specialised good). the spending in the economy would decrease. Thus, GDP will decrease. Depending on the size of the store, the impact will vary. Note that this is a simplified explanation based on too many assumptions. The results might vary if other conditions change.

Add a comment
Know the answer?
Add Answer to:
How does a store closure affect the economy
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT