According to the textbook, which distinguishing characteristic of business markets does the acceleration principle demonstrate?
A) concentrated demand
B) derived demand
C) higher levels of demand fluctuation
D) multiple buying influences

Question

Quizplus · Accepted Answer

The acceleration principle is a characteristic of business markets that demonstrates higher levels of demand fluctuation. It states that small changes in consumer demand can result in much larger changes in demand for resources further up the supply chain. This is because businesses have to react quickly to changes in consumer demand in order to maintain their inventory levels and meet customer needs.

According to the Textbook, Which Distinguishing Characteristic of Business Markets