Sometimes a Rise of Only 10% in Consumer Demand Can

question 20

Multiple Choice

Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products for the next period. This is an example of ________.

• A) inelastic demand
• B) direct purchasing
• C) fluctuating demand
• D) derived demand
• E) a straight rebuy

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Definitions:

Innate Ideas

Concepts and knowledge that are argued to be inborn or naturally present in the mind, rather than acquired through experience.

Cognitive Processes

The mental activities involved in acquiring, storing, retrieving, and using knowledge, including perception, memory, thinking, and language.

Balance Theory

A theory that proposes people strive for consistency and balance in their relationships and beliefs for a harmonious state.

Self-Stimulation Theory

A theory suggesting that behaviors are motivated by the intrinsic pleasure they provide.