ECONOMICS
MARKETS AND PRICES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Generally kept low
|
|
|
Maintained at a set level
|
|
|
Increased as consumer demand for the product increased
|
|
|
Reduced to be the cheapest in the market
|
Detailed explanation-1: -If a product is accepted by the marketplace, it enters the growth stage of the product life cycle. The growth stage is characterized by increasing sales, more competitors, and higher profits.
Detailed explanation-2: -Growth – In the growth stage, consumers start to take action. They buy the product; the product becomes popular and results in increased sales. There are other companies also that notice the product as it starts getting more attention and revenue.
Detailed explanation-3: -Growth Stage. The usual characteristic of a successful new product is a gradual rise in its sales curve during the market development stage. At some point in this rise a marked increase in consumer demand occurs and sales take off.
Detailed explanation-4: -The maturity stage, or the regular pricing phase, represents a plateau in the product’s sales and awareness. This is the time in the product life cycle where the product shows acceptable sales and profits. This may be the phase of the cycle where there is the highest level of competition.