This a weaken question in a dialogue between two people.
We want an answer choice that would weaken what Terry states, mainly his/her conclusion.
Terry's conclusion is that, "Price collapses cannot lead to economic improvement."
Obviously, we know that Robin would disagree with that. His/her entire dialogue fully explains how a price collapse is essentially part of a cycle that makes things better again (by making prices low for people to want to buy again).
Let us see if we can first see what is wrong with the conclusion that Terry reached in his/her argument.
The premise supporting Terry's conclusion is:
If people have no jobs and no money for anything other than basic necessities -----> People cannot increase spending
Terry uses this conditional reasoning as the sole reason for concluding that price collapses cannot lead to economic improvement.
Notice that in Terry's reasoning, there are TWO sufficient conditions that must be met.
Also notice, that Terry is NOT considering those who STILL HAVE JOBS.
We want an answer choice that weakens the idea that price collapses cannot increase economic productivity.
Answer choices:
A) Economy starts to improve again? This is putting the cart before the horse. No idea associated with the economy starting to improve again would help us weaken the argument put forward from Terry. What is leading us to the economic improvement we speak of? Is it a price collapse? We do not know! Eliminate.
B) Just because people realize that the bad economy will eventually improve does not weaken the idea about price collapses not leading to economic improvement. Eliminate.
C) This is a great answer for us. Imagine what this is saying. It is telling us that even those who did not lose their jobs...they slow down their spending in a bad economy, which allows them to save money! This would give them the opportunity to take advantage of a price collapse!
D) Would not weaken what Terry states. His conditional reasoning is that people will still buy the necessities. Eliminate!
E) Does nothing to our main idea of a price collapse not leading to economic improvement. In other words, we want something that shows that a price collapse CAN lead to economic improvement. Does the fact that there are things that are stable in terms of price hurt this idea? No! Eliminate.