If the line graph shows a plateau in sales for Product A, what can be inferred a

Practice Questions

Q1
If the line graph shows a plateau in sales for Product A, what can be inferred about its market saturation?
  1. Sales are increasing
  2. Sales are decreasing
  3. Market saturation has been reached
  4. Product A is being replaced

Questions & Step-by-Step Solutions

If the line graph shows a plateau in sales for Product A, what can be inferred about its market saturation?
  • Step 1: Understand what a plateau means in a line graph. A plateau is a flat section where the line does not rise or fall.
  • Step 2: Recognize that a plateau in sales means that sales are not increasing over time.
  • Step 3: Consider what market saturation means. Market saturation occurs when a product has reached its maximum sales potential in a market.
  • Step 4: Connect the two ideas: If sales are flat (plateau), it suggests that most potential customers have already bought Product A.
  • Step 5: Conclude that the plateau in sales for Product A indicates that the market may be saturated.
  • Market Saturation – Market saturation occurs when a product has reached its maximum sales potential in a given market, leading to a plateau in sales.
  • Line Graph Interpretation – Understanding how to interpret trends in line graphs, particularly identifying plateaus and their implications.
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