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If the supply increased more than the demand, or the demand decreased more than the supply then inventory will increase.
If demand increased more then the supply, or the supply decreases more then the demand then inventory will decrease.
If demand keeps pace with supply (increases of decreases by the same amount) then inventory will stay the same.
You can have high inventory with demand keeping pace with supply (if you started with it), you can't have rising inventory - since that by definition means demand is not keeping pace with supply.
But JG183 said...
Quote:
inventory level is a variable that is independent of demand level
Ugh now I remember why I got a d plus in Macroeconomics in college.
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