When the Excess Capacity of Business Expands Unintentionally, Aggregate

question 160

Multiple Choice

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.

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Definitions:

Merchandise On Hand

The inventory of goods that a retailer has available for sale at any given time.

Trade Discounts

Reductions from the list price of goods or services provided by a seller to a buyer in a commercial transaction.

Wholesaler

An entity that buys goods in large quantities from manufacturers or distributors and sells them to retailers or other businesses.

Retailer

A business that sells goods to the public in relatively small quantities for use or consumption rather than for resale.