A small change in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.How do economists refer to this phenomenon?

Question

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Economists refer to this phenomenon as the multiplier effect. This effect occurs because a small change in consumer demand can lead to an increase in demand for the equipment and facilities needed to produce the consumer product. This increased demand, in turn, can lead to increased economic activity and additional demand for other goods and services, resulting in a multiplier effect on the economy.

A Small Change in Consumer Demand Can Produce a Much