Question

Which scenario is an example of market saturation? The single coffee shop in town usually has a long line of customers and tends to stay busy during business hours. There are three shoe stores on one block in town, and they have trouble finding customers and making a profit. A second health club will open because the only health club in town is too crowded to accept new customers. It can be difficult to get reservations at the only upscale Ethiopian restaurant in town, and it is best to call in advance.

Answer 1

the three shoe shops would be the best example of market saturation because there is too many stores and not enough customers, therefore the market is over saturated with shoe stores.

Answer 2

There are three shoe stores on one block in town, and they have trouble finding customers and making a profit.

Explanation:

This is the scenario that best describes market saturation. Market saturation is a situation in which the volume of a product or service has been maximized. At this point, a business struggles to grow, and can only continue to grow by taking customers away from other businesses or by a rise in consumer demand. This seems to be the case with the shoe stores, as there are too many stores considering the level of consumer demand.