If Ep is 3500 and Y is 3000,then companies will
A)reduce orders and production by 500.
B)increase orders and production by 500.
C)wait for final sales to increase but continue to produce at existing level in the future.
D)wait for final sales to decrease but reduce the level of production in the future.

Question

Quizplus · Accepted Answer

If Ep (expected sales) is 3500 and Y (current production) is 3000, companies will anticipate higher demand than their current production levels and thus increase orders and production by 500 to meet the expected sales.

If Ep Is 3500 and Y Is 3000,then Companies Will