When the excess capacity of business expands unintentionally, aggregate:
A) Demand will increase
B) Demand will decrease
C) Supply will increase
D) Supply will decrease

Question

Quizplus · Accepted Answer

When the excess capacity of a business expands unintentionally, it means that the supply is greater than the demand, leading to a situation of oversupply. In such a scenario, the business is likely to face reduced demand, which would decrease the overall demand.

When the Excess Capacity of Business Expands Unintentionally, Aggregate