Final answer:
Businesses typically introduce new products during the expansion phase of the business cycle, when economic activity is on the rise, consumer confidence is high, and the market environment is favorable.
Step-by-step explanation:
During which phase of the business cycle does a business typically introduce new products? A business is most likely to introduce new products during the expansion phase of the business cycle. This phase, which follows a period of recovery, is characterized by increased economic activity, including higher levels of consumer confidence, spending, and demand. During expansion, companies are more willing to invest in new products and expansions as the market environment is more favorable and there is a greater likelihood of achieving a return on investment.
On the supply side of markets, producers of goods and services find it easier to expand production in the long term. This is because, in the short run, building a new factory or hiring new workers can be costly or difficult. Over a period of years, however, these expansions become possible, allowing businesses to introduce new products and capture market share during economic expansion.