A Given Percentage Increase in Consumer Demand Can Lead to a Much

question 124

Multiple Choice

A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce the additional output. Economists refer to this as ________.

• A) derived demand
• B) inelastic demand
• C) the acceleration effect
• D) a straight rebuy
• E) the sales cycle

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Definitions:

Urban

Pertaining to or characteristic of a city or town.

Suburban Americans

Refers to the demographic group residing in suburban areas, often characterized by a lifestyle distinct from that in urban or rural settings.

Intolerant

Showing an unwillingness or inability to accept different opinions, beliefs, or behaviors.

Racist Zealots

Individuals with an extreme and fanatical belief in racial superiority, often leading to discriminatory and hateful behavior towards other races.