Practicing Success
Practicing Success
CUET Preparation Today
| Say an automobile firm is a sole manufacturer and distributor of cars, scooters and other vehicles in an economy. The firm suddenly experiences an increase in inventory available at their manufacturing units and also at their outlets. The manager of the firm realises that their money would get blocked in inventory if they keep the production on the same pace. The firm is facing which of the following situations? |
Situation of excess demand of automobile in the market Situation of excess supply of automobile in the market Both None of these |
| Situation of excess supply of automobile in the market |
| There is excess supply of automobile in the market, that's why unsold stock increased. |
