Question

In the context of a new product, the sales of the product most likely peak during the _____ of its life cycle.

a. Introduction
b. Growth
c. Maturity
d. Decline

Answer 1

The sales of a new product peak during the maturity phase of its product life cycle. In the financial market, a rise in the supply of money will lead to a decline in interest rates.

Step-by-step explanation:

The sales of a new product most likely peak during the maturity phase of its life cycle. During the introduction phase, a new product is just entering the market and awareness is building. In the growth stage, sales increase rapidly as the product gains acceptance. However, it is in the maturity phase where sales typically peak as market saturation is achieved. Finally, the decline phase witnesses a fall in sales as the product loses market relevance or is outcompeted by newer offerings.

As for the changes in the financial market that will lead to a decline in interest rates, an increase in the supply of money, option (C), will lead to lower interest rates. This is because when lenders have more capital to lend, they may reduce interest rates to attract borrowers, thus increasing the supply of loanable funds and lowering the cost of borrowing.