If Aggregate Quantity Demanded Exceeds Aggregate Quantity Supplied, We Can

question 91

Multiple Choice

If aggregate quantity demanded exceeds aggregate quantity supplied, we can expect an unplanned

• A)depletion of inventories, causing firms to raise prices.
• B)depletion of inventories, causing firms to lower prices.
• C)accumulation of inventories, causing firms to raise prices.
• D)accumulation of inventories, causing firms to lower prices.

---

Definitions:

Industry Attractiveness

A measure of the potential profitability and prospects for growth within a particular industry, influenced by factors such as competition, barriers to entry, and market demand.

Transferable Resources

Assets or capabilities that can be used or applied in different areas within an organization or in different contexts.

Competitive Advantage

The attributes or conditions that allow a company to produce goods or services better or more cheaply than its competitors.

Core Competence

A primary area of expertise or strength of an organization that gives it a competitive advantage.