VoiceSys,Inc.produces voice mail switchboard systems used in large office buildings,hotels,and other facilities.VoiceSys is short of cash,but its products are so profitable and are selling so well that it has decided to buy more production equipment from one of the many suppliers that serve its industry.This example illustrates
A)how installations are a boom-or-bust industry.
B)why installations may have to be leased or rented.
C)derived demand.
D)All these answers are correct.

Question

Quizplus · Accepted Answer

The demand for business products derives from the demand for final consumer products.Installations are a boom-or-bust business.During growth periods,firms may buy installations to increase capacity; but during a downswing,sales fall sharply.Installations are often rented or leased.