A small percentage of increase in consumer demand can cause ____ in business demand.
A. Increase
B. Decrease***
C. No change
D. Panic
*** = to my answer
I need help for the whole 40 question exam. I already got the first one and this one is the 2nd question. Thank you!
Somone really should
I really need help with this one
Decrease
To answer this question, we need to understand the relationship between consumer demand and business demand. Consumer demand refers to the amount of goods or services that individuals are willing and able to purchase at a given price, while business demand refers to the demand for goods or services by businesses to meet consumer demand.
When consumer demand increases, businesses may respond in different ways depending on their ability to meet the increased demand. In some cases, businesses may choose to increase their production to meet the higher consumer demand. This would result in an increase in business demand.
However, in other cases, businesses may not be able to immediately or effectively respond to an increase in consumer demand. This could be due to limitations in their production capacity, availability of resources, or other constraints. In such situations, an increase in consumer demand can actually lead to a decrease in business demand. For example, if a business is unable to produce enough goods to meet the increased consumer demand, they may see a decrease in business demand as consumers turn to other competitors who can fulfill their needs.
Therefore, the correct answer to the question is B. Decrease.
Note: While I can help explain the concepts and reasoning behind the answer, it is important to study and understand the subject matter yourself. Simply relying on me to answer all the questions on your exam may not be the most effective approach for learning and retaining the information.