Question

Do you believe that consumers have learned their lesson from the 2007 recession and are now saving money, ‘cautious’ with spending, and hold a more ‘elastic’ demand on goods?

Answer 1

I do not believe this because we can still see rise in credit card debt of US consumers and no change in the savings rate which indicates no cautious approach by them in terms of saving and spending. There was change initially in 2008-10 years because of low employment, but as the economy started recovering, we saw the same spending tactics which indicates debt financed spending and very less savings. In terms of elasticity, yes there is some change as people switch fast towards low cost alternatives.

the above is the answer