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Aggregate planners seek to match supply and demand?
1) True
2) False

User Voice
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1 Answer

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Final answer:

True, aggregate planners aim to match supply with demand to meet consumer needs and avoid excess inventory. Higher prices due to increased demand can lead to more suppliers entering the market, demonstrating demand's influence on supply, as shown in supply and demand graphs. Shifts in consumer tastes, such as from traditional to digital news sources, are examples of how demand can change supply.

Step-by-step explanation:

True, aggregate planners indeed seek to match supply and demand. This process is essential to ensure that consumers' needs are met without creating excess inventory for businesses. When there is an imbalance, for example, if consumers demand more goods than are available on the market, the resulting higher prices can create additional opportunities for profit. This, in turn, can induce more suppliers to enter the market, balancing out the supply with the demand. The interaction between supply, demand, and price is central to this relationship and can be depicted using supply and demand graphs, which feature specific numbers on the price and quantity axis to illustrate market equilibrium or imbalances.

User RobLoach
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