During a national recession, we see the income in the economy decreasing and the majority of stock prices decline (stock prices reflect the value of a company and are directly related to its profits). However a few stock prices actually increase during a recessionary time. Using the information regarding supply and demand that we learned in Chapter 3, explain why some stock prices fall during a recession ? and why other stock prices rise during a recession?
Hint: During the Great Recession of 2007-2009, shoppers switched from Target to Walmart.