"A rise in the disposable income of people due to increase in the gross domestic product of a country creates increase in demand for products". Identify the dimension of business environment highlighted above :

Economic environment

The correct answer is option (2) : Economic environment

Technological Conditions:

• Explanation: Technological conditions represent broader trends and advancements in technology. This includes innovations, automation, and the impact of technology on industries. Businesses need to adapt to technological changes to remain competitive.

Economic Conditions:

• Explanation: Economic conditions encompass factors such as inflation, interest rates, and overall economic growth. Economic conditions impact consumer spending, investment, and business operations, influencing the financial health  of organizations.

Legal and Regulatory Environment :

• Explanation : The ;legal and regulatory environment includes laws and regulations governing business operations. Compliance with legal requirements is crucial, and changes in regulations can affect business practices and strategies.

Political Environment :

• Explanation : The political environment involves government policies, stability, and political events. Political decisions can impact businesses through changes in regulations, taxation, or trade policies.