- This topic has 1 reply, 2 voices, and was last updated 1 year ago by
.
- Posts
In demand & supply if we supply 1200 units of computers whereas the demand for computers is 1000 units. What will be the effect on the demand & supply and the profit or loss for producing these units even though some of them will not be sold and therefore a loss?
Supply means that we are going to sell 1200 units of computers to customers whereas demand from customers is 1000 units. So how much we are going to sell and how much we are not going to sell and therefore it will be a loss if we supply?
This question is related to understanding the profit table.
If the demand is only 1000 units then we will only sell 1,000 units.
That means that either we will only produce 1,200 units, or (if we had ordered 1,200 from the supplier) then we will still only sell 1,000 and the remaining 200 will maybe be sold as scrap.
However I cannot say more without seeing the whole question.
- You must be logged in to reply to this topic.