11
practice testMultiple Choice

Practice Test

Question 11 • Economics and Personal Finance

Which scenario is an example of market saturation?

Answer
A
There are three shoe stores on one block in town, and they have trouble finding customers and making a profit.
B
The single coffee shop in town usually has a long line of customers and tends to stay busy during business hours.
C
It can be difficult to get reservations at the only upscale Ethiopian restaurant in town, and it is best to call in advance.
D
A second health club will open because the only health club in town is too crowded to accept new customers.
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