A Demand Shock Occurs When Large Numbers of Consumers Unexpectedly

question 19

True/False

A demand shock occurs when large numbers of consumers unexpectedly reduce their purchases of goods and services.

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Definitions:

Indirect Materials

Materials used in the production process that do not directly become part of the finished product.

Manufacturing

The procedure of changing basic materials, components, or elements into end products that align with a customer’s needs or criteria.

Direct Materials

Raw materials that can be directly traced to the manufacturing process of a product and are a significant part of its cost.

Secondary Materials

Materials used in the production process that are not the primary raw materials.