As a result of the _____, a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to manufacture the consumer product.

A. demand fluctuation principle
B. joint demand principle or division effect
C. inelastic demand effect
D. multiplier effect
E. derived force effect


Answer: D

Business

You might also like to view...

If market value is less than cost, the difference between the cost and market value of inventory is considered a loss due to holding inventory and should be reported on the income statement as an expense

a. True b. False Indicate whether the statement is true or false

Business

Sponsorships and event marketing are used by companies to build brand loyalty and to develop positive feelings toward the company

Indicate whether the statement is true or false

Business

Which of the following is true about market nichers?

A) They are market followers in small markets. B) They tend to have high manufacturing costs. C) Their return on investment exceeds that in larger markets. D) A nicher achieves high volume as against a mass marketer that achieves high margin. E) They usually experience long-term losses.

Business

Missing responses represent values of a variable that are unknown, either because respondents provided ambiguous answers or their answers were not properly recorded

Indicate whether the statement is true or false

Business