Businesses often lose money because they either underestimate or overestimate consumer demand.

Name: Businesses often lose money because they either underestimate or overestimate consumer demand.
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Question

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Businesses can lose money if they underestimate consumer demand by not having enough inventory to meet customer needs, leading to missed sales opportunities. Conversely, overestimating demand can result in excess inventory, tying up capital and potentially leading to losses if the products do not sell.

Businesses Often Lose Money Because They Either Underestimate or Overestimate