Inventories rise when
A) actual demand for output is more than expected.
B) actual demand for output is less than expected.
C) actual supply of output is less than expected.
D) actual demand for output is about the same as expected.

Question

Quizplus · Accepted Answer

Inventories rise when actual demand for output is less than expected, as businesses produce more products than they sell and thus have excess inventory.

Inventories Rise When