When the total quantity of unsold new Chevrolets increases from 50,000 to 75,000
A)the economy experiences a period of disinvestment.
B)the economy's level of competition increases.
C)there is an increase in the rate of aggregate output.
D)the producer undergoes an inventory investment.

Question

Quizplus · Accepted Answer

When the total quantity of unsold new Chevrolets increases from 50,000 to 75,000, it means that the producer (Chevrolet) has an increase in inventory, which represents an inventory investment. This can indicate that demand for the product is not meeting the current supply, and the producer may need to adjust production levels or pricing to reduce inventory levels in the future.

When the Total Quantity of Unsold New Chevrolets Increases from 50,000