According to the textbook, which concept is illustrated by business markets increasing the buildup or reduction of inventories by increasing or decreasing plant capacity in response to changes in consumer demand?
A) concentrated demand
B) the acceleration principle
C) higher levels of demand fluctuation
D) multiple buying influences

Question

Quizplus · Accepted Answer

The acceleration principle states that small changes in consumer demand can lead to larger changes in demand further up the supply chain. This is exemplified by businesses increasing or decreasing their plant capacity and inventory in response to changes in consumer demand.

According to the Textbook, Which Concept Is Illustrated by Business