Final answer:
The economic concept that describes significant changes in demand for production facilities and equipment due to small price changes in consumer products is Price Elasticity of Demand.
Step-by-step explanation:
The economic concept that describes a situation where small changes in the price of consumer products lead to substantial increases or decreases in demand for the facilities and equipment needed to manufacture the consumer product is called Price Elasticity of Demand. This concept is essential in understanding how consumers react to price changes. If the demand for a product is very sensitive to price changes, it is said to be "elastic." Conversely, if the demand is not as sensitive to price changes, it is considered "inelastic." An example of an elastic product could be a luxury car, where a slight decrease in price could lead to a significant increase in demand. On the other hand, essential goods such as bread may have inelastic demand; even if the price rises, the quantity demanded may not drop significantly.