Question

Sales of woollen clothing usually increase during the winter season and decline thereafter. This is an example of ________ demand.

1) irregular
2) declining
3) impulse
4) latent
5) negative

Answer 1

Sales of woollen clothing during winter that decline afterwards represent seasonal demand, which corresponds with changes in weather.

Step-by-step explanation:

The increase in sales of woollen clothing during the winter season and the subsequent decline thereafter is an example of seasonal demand. This pattern occurs because the need for woolen clothing is tied directly to the change in weather, with more people buying warm clothes as temperatures drop. Seasonal demand is a type of market demand that is highly influenced by the time of the year, characterized by peaks in demand during certain periods, which in this case is the winter season for woolen clothing.