Final answer:
The product cycle of a service or manufactured good is interconnected with the business strategy, as demonstrated by Apple and their iPhone.
Step-by-step explanation:
In a market economy, the product cycle of a service or manufactured good is interconnected with the business strategy. The product cycle refers to the stages that a product goes through from its initial development to its decline in the market. The business strategy, on the other hand, is the plan that a company develops to achieve its long-term goals.
For example, let's consider the company Apple and its product cycle for the iPhone. Apple follows a strategy of continuously innovating and releasing new versions of the iPhone to meet customer demand. As economic changes occur, such as a recession or inflation, Apple adjusts its strategy accordingly. During a recession, Apple may focus more on pricing and offering discounts to attract customers, while during periods of inflation, they may emphasize the quality and unique features of the iPhone to justify its higher price.