If the line graph shows a plateau in sales for Product A after a period of growt
Practice Questions
Q1
If the line graph shows a plateau in sales for Product A after a period of growth, what does this suggest about consumer behavior?
Saturation of the market
Increased advertising
Seasonal fluctuations
Product recalls
Questions & Step-by-Step Solutions
If the line graph shows a plateau in sales for Product A after a period of growth, what does this suggest about consumer behavior?
Step 1: Look at the line graph and identify the period of growth for Product A. This means sales were increasing over time.
Step 2: Notice when the sales line levels off and becomes flat. This is called a plateau.
Step 3: Understand that a plateau means sales are no longer increasing. This suggests that many people who wanted to buy Product A have already done so.
Step 4: Realize that when most potential customers have bought the product, it indicates that the market is saturated.
Step 5: Conclude that consumer behavior shows that there is less demand for Product A after the initial growth period.
Market Saturation – A situation where the volume of a product sold has reached its maximum potential in the market.
Consumer Behavior – The study of how individuals make decisions to spend their available resources on consumption-related items.
