Question

Catalog companies are committed to selling at the prices printed in their catalogs. if a catalog company finds its inventory of sweaters rising, what does that tell you about the demand for sweaters?

Answer 1

The demand for sweaters has decreased. Because catalog companies cannot change their prices depending on the market, their inventory of sweaters will rise when demand for sweaters decreases.This may not be correct, i haven't done economics for years, but that's my guess.