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.

---

Definitions:

Projection

A defense mechanism where an individual unconsciously attributes their own unacceptable thoughts, feelings, or motives to another person.

Undesirable Characteristics

Traits or features that are not wished for or are deemed negative or harmful in a certain context or environment.

Defense Mechanism

Psychological strategies brought into play by individuals, groups, and even nations to cope with reality and to maintain self-image.

Displacement

In psychology, the shifting of negative feelings or desires from the original object to a more acceptable or safer substitute.