Answer:
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Explanation:
If the total production is R500 million and the aggregate demand is R550 million, it means there is a difference between the total production and the aggregate demand. This difference indicates a surplus in aggregate demand over production.
To calculate the surplus in aggregate demand, we subtract the total production from the aggregate demand:
Surplus in aggregate demand = Aggregate demand - Total production
\[ Surplus = R550 \, \text{million} - R500 \, \text{million} = R50 \, \text{million} \]
Therefore, the surplus in aggregate demand is R50 million.
