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Sales of premium products increased due to higher purchasing power of customers. This is related to which dimension?

Answer and explanation

Correct answer: Economic dimension

Direct answer: Option C, the economic dimension. Purchasing power means the ability of customers to buy goods and services. It depends mainly on income, prices, savings, employment, and the general economic condition. Step by step, customers’ purchasing power rises, they can afford costlier premium products, demand for those products increases, and their sales rise. Option A, technological dimension, concerns technology, innovation, machines, and production processes; no such change is stated. Option B, political dimension, concerns government policy and political conditions; no policy is given as the reason for higher sales. Option C is correct because purchasing power is a direct economic factor. Option D, legal dimension, concerns laws, rules, licences, and compliance; none explains the customers’ ability to spend. A common mistake is to confuse purchasing power with a social preference. Preference may affect which product people choose, but the ability to pay is economic. Memory cue: income, purchasing power, inflation, prices, savings, and interest rates belong to the economic dimension.

Related tags

Economic DimensionPurchasing PowerPremium Products

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