Business markets are subject to the acceleration principle.

Name: Business markets are subject to the acceleration principle.
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Question

Quizplus · Accepted Answer

The acceleration principle states that any increase or decrease in consumer demand for goods and services will result in a greater increase or decrease in the demand for the capital goods (e.g. machinery, equipment) needed to produce those goods and services. As businesses serve the consumer market, they are subject to the acceleration principle.

Business Markets Are Subject to the Acceleration Principle