What causes a surplus and how can it be fairly quickly resolved? what are the determinants of inelastic demand?

1.       The cause of a surplus is when quantity that are produced are not equivalent with the demanded quantity and by this, there is likely an effect of the supply or demand to be in excess, creating surplus.

2.       It can be quickly resolved if the quantity produced is as equal with demand quantity.

3.       The determinants of inelastic demand are the following;

·         Categories of product

·         Substitutes (few)

·         Less time given

·         Necessities

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