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MATURITY STAGE: The third stage in the product life cycle, characterized by flattening of sales and decreasing profit margins. Advertising and promotion are used to maintain market share and to prevent the erosion of sales and profits. During this stage, the initial decline of a product begins and many businesses try to "re-invent" their products to prevent the upcoming decline stage. Many times the company finds new uses for an existing product (baking soda as a deodorizer), totally new markets (foreign countries), or a way to enhance the existing product to make it better and to re-start the life cycle. The television has gone through at least two life cycles, first from black and white to color and then from color to high definition (HD) and plasma. Along the way there were enhancements such as remote control, VCRs to complement them, and cable to help with reception.

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SUPPLY-DRIVEN BUSINESS CYCLES

Business-cycle instability caused by changes in one or more of the determinants underlying the aggregate supply of gross domestic product--including resource quantity, resource quality, and resource price. This is one of two basic types of business cycles--the other being demand-driven business cycles. Supply-driven business cycles tend to be the less common of the two types.

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