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A shortage of a product, caused by demand exceeding supply, leads to a rise in its market price. Which dimension of the business environment is involved?

Answer and explanation

Correct answer: Economic dimension

Demand, supply, and price are economic factors. When demand exceeds supply, a shortage can put upward pressure on the market price, so this concerns the economic dimension.

Related tags

Business EnvironmentEconomic DimensionDemand And SupplyDimensions Of Business EnvironmentBusiness StudiesClass 12 Mcq

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