What does 'market saturation' imply?

Market saturation occurs when the demand for a product or service in a given market has been met, leading to a situation where no new demand is being generated. At this point, companies may find it challenging to attract new customers, as most potential buyers already own the product or have access to the service. This indicates a fully reached market point where growth opportunities become limited, and businesses might face increased competition for the existing customer base.

In contrast, the other options indicate different market conditions: continual new demand suggests an expanding market; excess demand over supply implies growth potential; and dominance by a single player relates to monopolistic conditions, none of which define market saturation.