What can be inferred if the line graph shows a parallel trend between Product A

Practice Questions

Q1
What can be inferred if the line graph shows a parallel trend between Product A and Product C's sales?
  1. They are competing products
  2. They are complementary products
  3. They are from different markets
  4. They have similar pricing strategies

Questions & Step-by-Step Solutions

What can be inferred if the line graph shows a parallel trend between Product A and Product C's sales?
  • Step 1: Look at the line graph showing sales for Product A and Product C.
  • Step 2: Check if the lines for Product A and Product C move in the same direction over time.
  • Step 3: If both lines go up and down together, this means they have similar sales trends.
  • Step 4: Understand that similar trends suggest that Product A and Product C might be competing for the same customers.
  • Step 5: Conclude that if the sales trends are parallel, it indicates competition in the same market.
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