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If demand changes due to customer income, preference and family size, which environmental aspect is shown?

Answer and explanation

Correct answer: Effect of social and economic components

Option B is correct because the example combines economic and social influences on demand. Customer income is an economic factor: when purchasing power changes, the ability to buy goods may also change. Preferences and family size are social or demographic factors that influence what is wanted, how much is needed and which product variant is suitable. Their combined effect shows that environmental dimensions are interconnected rather than isolated. Option A is wrong because machine capacity is an internal or technological production matter and does not explain the stated customer causes. Option C is unrelated to customer demand. Option D contradicts the question because demand is explicitly changing in response to several factors.

Related tags

Social EnvironmentEconomic EnvironmentDemandDimensions Of Business EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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