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:

Regression

A defense mechanism where an individual reverts to earlier stages of psychological development in response to stress or conflict.

Babyish Behaviors

Actions or mannerisms typical of a baby or young child, which may be exhibited by older children or adults, often in seeking attention or comfort.

Clinging

The act of holding tightly or adhering closely to something, often for emotional support, security, or dependency.

Categorical Self

The concept of self based on categorizing oneself into groups, such as age, gender, or skills, often seen in early childhood.