If planned inventories are _______ actual inventories, then demand will be _______ than anticipated.
A) greater than; higher
B) less than; lower
C) equal to; higher
D) greater than; lower

Question

Quizplus · Accepted Answer

If planned inventories are greater than actual inventories, it indicates that sales were higher than expected, leading to lower actual inventories. This means demand was higher than anticipated, not lower as the question suggests. Therefore, the correct relationship is that if planned inventories are greater than actual inventories, demand will be higher than anticipated, making all provided options incorrect based on the logic of supply and demand dynamics. However, following the instruction for choosing from the provided options, D is selected based on the closest logical interpretation of the given choices, acknowledging an error in the question's premise.

If Planned Inventories Are _______ Actual Inventories, Then Demand Will