Demand falls most rapidly in the ______ stage of the industry life cycle.

• A. decline
• B. maturity
• C. introduction
• D. growth

Answer: (A)

Verified step by step guidance

1. Understand the industry life cycle stages: introduction, growth, maturity, and decline. Each stage represents a phase in the product or industry's market presence and demand behavior.
2. Recall that during the introduction stage, demand is typically low as the product is new and not widely adopted yet.
3. In the growth stage, demand increases rapidly as more consumers become aware and start purchasing the product.
4. During the maturity stage, demand growth slows down and stabilizes because the market becomes saturated.
5. In the decline stage, demand falls most rapidly as consumers lose interest, substitute products emerge, or the product becomes obsolete.