Hello,
The answer should be option D "It encourages companies to produce more of the product".
Reason:
A saturated market is a product that is distributed which means companies would have to make more of that product in order to make money, and to have more consumers buy their products. The answer is not option A because the consumer will demand more of the product but not to be higher. Its not option B because the product is being distributed among people but not different consumers. Its also not option C because its not against other markets. Therefore the answer is option D.
If you need anymore help feel free to ask me!
Hope this helps!
~Nonportrit