Question

In response to the increasing demand for electronic gadgets with advanced capabilities, ziff corp., an electronic gadget manufacturer, has increased its inventories and plant capacity in order to meet the demand. this increase in inventories and plant capacity due to an increase in demand for electronic gadgets can be best explained by _____.​

Answer 1

the increase could be best explained by the acceleration principle
According to the acceleration principle, if a demand for certain products increased, the investment for that products will also be increased.
This will lead to the sellers gained the capability to increase their inventories to fulfill more orders.