Question 26
MediumOriginal questionA two-wheeler maker studies its monthly sales from 2010 to 2025. It notes four features: sales jump every October and November in the festival season; over the fifteen years they climb steadily as incomes rise; they sag for two or three years at a stretch when the wider economy slows, then recover; and they collapsed in April 2020 when a nationwide lockdown shut its showrooms.
Which component is the two-wheeler maker's sag of two or three years when the economy slows?
Show the answer and explanation
Correct answer: A
Explanation
It lasts more than a year and follows the ups and downs of the economy.
Booms and slumps of this kind are cyclical variation.
Worth noting
It is not seasonal: a season repeats within a year, while this swing takes years.
- Concept
- Cyclical variation
- Typical timeTypical
- 120 s
- Your timeYours
- —
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