CUET Preparation Today
When there is unexpected rise in the sales _____. |
Aggregate demand would decline. There will be unplanned accumulation of inventories. There will be unplanned decumulation of inventories. Normal profit would be lower. |
There will be unplanned decumulation of inventories. |
The correct answer is Option (3) → There will be unplanned decumulation of inventories. Change in inventories may be planned or unplanned. In case of an unexpected fall in sales, the firm will have unsold stock of goods which it had not anticipated. Hence there will be unplanned accumulation of inventories. In the opposite case where there is unexpected rise in the sales there will be unplanned decumulation of inventories. |
