What can be concluded if the line graph shows a plateau in sales for Product A a

Practice Questions

Q1
What can be concluded if the line graph shows a plateau in sales for Product A after a period of growth?
  1. Sales are expected to decline
  2. Sales will continue to grow
  3. Market saturation may have occurred
  4. Consumer interest is increasing

Questions & Step-by-Step Solutions

What can be concluded if the line graph shows a plateau in sales for Product A after a period of growth?
  • Step 1: Look at the line graph and identify the period of growth for Product A.
  • Step 2: Notice when the sales line stops rising and levels off, creating a flat section, which is called a plateau.
  • Step 3: Understand that a plateau means sales are no longer increasing.
  • Step 4: Consider what a plateau might mean for the market, such as that most potential customers have already bought the product.
  • Step 5: Conclude that the market may be saturated, meaning there are fewer new customers to drive sales growth.
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