One year many customers' machinery wears out and needs to be replaced. The following year no customers need new machinery. This is an example of ________ demand.
A) inelastic
B) fluctuating
C) elastic
D) consumer
E) static

Question

Quizplus · Accepted Answer

Fluctuating demand refers to demand that varies significantly from one period to another, which is exactly what is happening in this scenario. In the first year, there is high demand for machinery replacement, while in the following year, there is no demand. Inelastic demand refers to demand that does not change much in response to price changes, while elastic demand refers to demand that is highly responsive to changes in price. Consumer demand is a general term referring to the overall demand for goods and services by end consumers. Static demand is not a commonly used term in economics.

One Year Many Customers' Machinery Wears Out and Needs to Be