When there is unexpected rise in the sales
When there is unexpected rise in the sales
Solution
✅ Correct Option: 3
Unexpected rise means sudden -> increase in sales.
Aggregate demand is total -> market demand.
Unplanned accumulation means extra -> stock stored.
Unplanned depletion means less -> stock left.
Normal profit is average -> expected gain.
- Aggregate demand would decline: no effect
- There will be unplanned accumulation of inventories: no effect
- There will be unplanned depletion of inventories: yes effect
- Normal profit would be lower: no effect
Answer is 3 because sales -> rise means less stock.
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