"The health and fitness trend has become popular among many urban dwellers. This has created a demand for products like organic food, gyms, bottled (mineral) water and food supplements". Identify the component of the business environment highlighted in the aforesaid statement.

Social environment

The correct answer is Option (2) → Social environment

• The statement highlights changes in lifestyle, attitudes, and preferences of people (urban dwellers focusing on health and fitness).

• This is a part of the social environment, which includes cultural values, traditions, demographics, lifestyles, and social trends.

• Economic environment → Refers to income, inflation, interest rates, etc.

• Technological environment → Relates to innovations and advancements in technology.

• Political environment → Refers to government policies, stability, and regulations.