One of the characteristics of organizational or industrial markets. The demand for industrial goods and services tend to be more volatile than the demand for consumer goods and services. A given percentage in consumer demand can lead to a much larger
percentage increase in the demand for plant and equipment necessary to produce the additional output. Sometimes, arise of only 10 percent in consumer demand can cause as much as 150-200 percent rise in industrial demand for products in the next period; similarly 10 percent fall in consumer demand can cause as much as 150-200 percent fall in industrial demand for products.
