An Automobile Firm Is Positioning Its Product to Serve Only

question 1

Multiple Choice

An automobile firm is positioning its product to serve only a specific group of brand loyalists.This shows that the particular product is in the:

• A)maturation stage of its life cycle.
• B)growth stage of its life cycle.
• C)decline stage of its life cycle.
• D)introduction stage of its life cycle.
• E)levelling stage of its life cycle.

---

Definitions:

Complements

Goods or services that are typically consumed together, where the increase in the price of one leads to a decrease in demand for the other.

Linear Demand Curve

A graphical representation of demand where a straight line shows a constant relationship between quantity demanded and price.

Unit-Elastic

A situation in which a product's price elasticity of demand is exactly one, indicating that the change in quantity demanded is directly proportional to the change in price.

Elastic Inelastic

Elastic demand refers to a significant change in quantity demanded when the price changes, while inelastic demand indicates little to no change in quantity demanded despite price changes.