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

question 68

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 the ________.

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

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Definitions:

Forces Of Nature

Natural phenomena such as earthquakes, floods, and hurricanes that occur with significant impact on human activities and the environment.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing for some degree of market power.

Regulated Monopoly

A market structure where a single company is allowed to operate exclusively with governmental oversight and regulations to ensure consumer protection.