Gun Sales fall by $100 million due to the \'Trump slump\' CNBC 912/17 American O
ID: 1137449 • Letter: G
Question
Gun Sales fall by $100 million due to the 'Trump slump' CNBC 912/17 American Outdoor Brands, one of the largest gun manufacturers in the United States, experienced a 48.5 percent decrease in firearms revenue this quarter compared with the same time last year, The Guardian reports. Sales fell $100 million as a result of what has been called the "Trump slump. The political climate has influence over gun sales. The expectation of many Americans that Hillary Clinton, the vocal pro-gun-control candidate, was going to win the presidential election in November is considered largely responsible for last year's surge People buy firearms at the highest rates when they fear regulations will be enhanced. The mass shooting at an Orlando nightclub shooting in June of 2016 also spurred record sales. According to the FBI's National Instant Criminal Background Check System (NICS), over 27.5 million firearm background checks for gun transactions were processed in 2016. That was over 4 million more than the previous year, and double the number of transactions in 2008. Based on this article which of the following is true about the supply and demand of guns from 2016 to 2017 O There was a decrease in demand for guns, and a decrease in the quantity supplied of guns O There was a decrease in quantity demanded, and a decrease in quantity supplied of guns O There was a decrease in the supply and guns and a decrease in the quantity demanded for guns. There was a decrease in supply and a decrease in demand for guns.Explanation / Answer
As the increase in the demand and subsequent decrease in the demand is by the factor other than the price of the guns, it will be considered as a decrease in the demand for guns. But, it will not shift the supply curve and the change in the supply will only be of the quantity supplied i.e. the movement along the supply curve.
the answer is "A", there was a decrease in demand for guns, and a decrease in the quantity supplied of guns.
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