If is constrained, we should A

Economics Apr 01, 2021

If is constrained, we should A. demand, lower B. demand, raise C. capacity, raise D. capacity, lower
the staffing level to lower capacity.

Expert Solution

Answer

A .

Explanation

Demand is constrained means there will be under-utilization, so we must lower the capacity by lowering the staffing level. Or we can say that when there is excess supply of goods and resources, it means it is demand-constrained. So, staffing level should lowered to increase capacity. SO, the correct option is A "Demand, Lower".

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