What represents cyclical variations in demand?

Cyclical variations in demand refer to the wavelike movements that occur over multiple years, often tied to economic cycles that can influence buying behavior. This could involve factors such as periods of economic growth or recession, where consumer demand rises and falls in a pattern that typically aligns with broader trends in the economy, leading to predictable cycles of demand increases and decreases over time.

This concept is distinct from daily fluctuations, which are more short-term and can change from day to day. Random events, such as strikes, introduce unpredictable disruptions that do not follow a consistent or wavelike pattern, making them unrelated to cyclical variations. Constant seasonal patterns involve regular changes based on specific seasons, such as increased sales during holidays, but do not capture the more extended cycle that can occur in line with economic fluctuations. Therefore, the correct answer identifies the broader, long-term wavelike patterns that characterize cyclical variations in demand.