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Which example shows political environment affecting industry demand?

Answer and explanation

Correct answer: The government provides incentives for purchasing clean-energy equipment

A government incentive is a policy decision, so it reflects the political environment. By lowering the effective purchase cost, it can increase demand for clean-energy equipment. Option B reflects social preferences, C is a technological change, and D relates to the natural environment. Exam tip: Link government policies, taxes, subsidies, and regulations with the political environment.

Related tags

Business EnvironmentPolitical EnvironmentGovernment IncentivesIndustry DemandClass 12 Business StudiesBusiness StudiesClass 12 Mcq

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