HISTORY
THE WORLD BETWEEN THE WARS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Overproduction of a product can lead to
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Decline in industrial output and rising unemployment
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increased production
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an increase in the products popularity
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Increased profits
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Explanation:
Detailed explanation-1: -Inaccurate Forecasting. The cycle begins with brands overproducing merchandise to meet the anticipated demand. Inaccurate forecasting often leads retailers to order too much inventory, which results in overproduction and waste.
Detailed explanation-2: -Overproduction and underconsumption of goods Businesses started to produce more than there was a demand for, which caused them to sell their products and services at a loss. This caused severe deflation, during the Great Depression. Because of deflation, many businesses shut down.
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