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Question

Economics Question on Microeconomics

When there is unexpected rise in the sales ___________ .

A

Aggregate demand would decline

B

There will be unplanned accumulation of inventories

C

There will be unplanned decumulation of inventories

D

Normal profit would be lower

Answer

There will be unplanned decumulation of inventories

Explanation

Solution

An unexpected rise in sales leads to unplanned decumulation of inventories as stock depletes faster than expected.