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Economy decreasing and the majority of stock prices

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Reference no: EM131229943

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.

Reference no: EM131229943

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