introduction: the new product is released in the market (it is born), sales are slow and advertisement costs are high.
growth: sales volume increases, customers know about the product, and competing firms are starting to launch their own versions of the product.
maturity: sales growth stops, which means that total sales reached a zenith, companies fight to keep their share of the market and generally launch different versions of the product to keep customers interested.
decline: sales volume starts to decrease as the product becomes obsolete. Finally the product will stop being produced (the product dies).
The correct answer is c. the resulting increase in price is proportionately greater than decrease in quantity sold.
Explanation:
if supply decreases and the supply curve shifts to the left the equilibrium price is likely to increase. An increase in revenue after an increase in price would mean that an increase in price is proportionately greater than a decrease in quantity sold.
