Question

Examine surplus during this pandemic. explain in one paragraph.

Answer 1

Surplus occurs when quantity supplied is greater than quantity demanded. During the COVID pandemic many industries let's say consumer electronics saw a slump on sales, but production of these are contractual and are produced way ahead of time ( production cannot be stopped as it will cause greater losses). This mean there are rising inventories. These rising inventories are the surplus , and once the pandemic lockdown is lifted we can predict that such surpluses will start to reduce .

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