As a result of the a small increase or decrease in

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51. As a result of the _____, a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to manufacture the consumer product. a. demand fluctuation principle b. joint demand principle or division effect c. inelastic demand effect d. multiplier effect e. derived force effect ANS: D The multiplier effect (accelerator principle) is a 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. PTS: 1 REF: 107 OBJ: 07-6 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Customer 52. Electric cars will increase the demand for electricity, which will then dramatically increase demand for the equipment needed to provide consumers with the electricity. This dramatic increase is due to the: PTS: 1 REF: 107 OBJ: 07-5 TYPE: App
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TOP: AACSB Reflective Thinking | TB&E Model Customer 53. Jif is the best-selling brand of peanut butter in the country. The manufacturer purchases large quantit- ies of peanuts every year to manufacturer its product. This order size is an example of _____ and would give Jif an advantage over other buyers of peanuts. PTS: 1 REF: 107 OBJ: 07-6 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Customer 54. Buyers in the business market tend to _____ than buyers in the consumer market. PTS: 1 REF: 107 OBJ: 07-6 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Customer 55. The distribution structure in business marketing typically: a. includes at least one wholesaler b. is direct c. is complex and multistage d. uses a three-step channel e. uses retail distributors ANS: B Direct channels, where manufacturers market directly to users, are much more common in business markets than in consumer markets. PTS: 1 REF: 107 OBJ: 07-6 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Distribution
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