_____ refers to the phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.

Question

Quizplus · Accepted Answer

The phenomenon described is known as the multiplier effect. It occurs when changes in consumer demand for products have a ripple effect throughout the supply chain, resulting in a larger increase or decrease in demand for associated goods and services. This can create a self-reinforcing cycle that amplifies the initial demand shock.

_____ Refers to the Phenomenon in Which a Small Increase