Answer: Toothpaste producers

## Explanation **Defensive companies** are those whose products/services have: - **Inelastic demand** - consumers continue buying regardless of economic conditions - **Essential nature** - basic necessities that people cannot easily eliminate - **Stable revenues** during economic downturns **Analysis of options:** - **A. Toothpaste producers** - Defensive - Essential hygiene product - Inelastic demand - Consumers continue purchasing during recessions - **B. Airline travel companies** - Cyclical - Discretionary spending - Highly sensitive to economic conditions - First to be cut during downturns - **C. Discretionary consumer goods producers** - Cyclical - Non-essential purchases - Highly sensitive to economic conditions - Demand decreases during recessions Therefore, toothpaste producers are the most defensive as they provide essential products with stable demand throughout the business cycle.

Author: LeetQuiz Editorial Team