As a Result of the _____,A Small Increase or Decrease

question 159

Multiple Choice

As a result of the _____,a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to manufacture the consumer product.

• A) demand fluctuation principle
• B) joint demand principle or division effect
• C) inelastic demand effect
• D) multiplier effect
• E) derived force effect

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Definitions:

Common Stock

Constitutes a type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Stock Subscription Plan

A method through which a company offers its shares to investors or employees ahead of the general public, often at a discount or with preferential terms.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which may differ from its market value.

Installments

Regular payments made over a period of time to pay off a debt.