A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce the additional output. Economists refer to this as ________.

A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce the additional output. Economists refer to this as ________.



A) derived demand
B) inelastic demand
C) the acceleration effect
D) a straight rebuy
E) the sales cycle


Answer: C


Learn More :