A Small Change in Consumer Demand Can Produce a Much

question 19

Multiple Choice

A small change in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.How do economists refer to this phenomenon?

• A) as the multiplier effect
• B) as latent demand
• C) elastic demand
• D) as joint demand

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Definitions:

Normal Populations

Populations that follow a normal distribution, where the majority of data points are concentrated around the mean value.

Standard Error

A statistical term that measures the accuracy with which a sample distributes around the population mean; it is the standard deviation of the sampling distribution.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to estimate population parameters.

Formal Charge

Used to calculate the charge of an atom in a molecule, assuming that electrons in all chemical bonds are shared equally between atoms.