Final answer:
Market growth refers to the change in the total size of the market over a period of time. It is measured by the total sales for all producers in a market and indicates the level of economic activity in that market. Market growth is important for businesses to monitor and can lead to new opportunities for growth.
Step-by-step explanation:
Market growth refers to the change in the total size of the market over a period of time. It measures the expansion or contraction of the market. This growth can be measured in terms of the total sales for all producers in a market, indicating the level of economic activity in that market.
For example, if a market experiences a 5% increase in the total sales of all producers over a year, it can be said that the market is growing at a 5% rate. This indicates an increase in demand and economic activity within the market.
Market growth is an important indicator for businesses to monitor, as it can affect their sales and profitability. It helps businesses identify new opportunities for growth, such as expanding into new market segments or developing new products to meet the changing demands of the market.