When Demand Increases in the Consumer Market, the Business Market

question 118

Short Answer

When demand increases in the consumer market, the business market reacts by accelerating the buildup of inventories and increasing plant capacity. This phenomenon is known as the ______________ principle.

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Definitions:

Journalize

The act of recording financial transactions in a company's journal, a step in the accounting process.

Withdraws

The action of taking money out of an account, or removing capital from a business by its owners.

Personal Use

Personal use refers to the utilization of property, assets, or services for individual rather than business or commercial purposes.

Journal Entry

A record of financial transactions in the accounting books of a business, showing the accounts affected and the amounts of debits and credits.