Question

Suppose that due to the development of a new flu vaccine for a specific type of flu, the demand for hand sanitizer has decreased by 50%. Smith & Smith, a company that produces and sells hand sanitizer, should Decrease) production of its hand sanitizer. (Increase or Suppose that there is evidence that a new flu, H15N9, is slowly developing and spreading. True or False: Smith & Smith should significantly decrease production capacity by getting rid of capital equipment. (True or False).

Answer 1

increase and false

Step-by-step explanation:

As information given, the flu is new in the market and has serious issues, and now that no cure or solution is feasible and will not be possible soon,

For a safety precaution, the hand sanitizer may help to get sick with Flu. But people are going to buy the sanitizer at a massive price.

As a result , demand for such a commodity will increase tremendously on the market, and it will do so even though the company has to expand its manufacturing capacity by leasing it.

So it would increase the production level so the last statement is false