Question : Which of the following is an example of a demographic factor
Option 1: Inflation rate
Option 2: Consumer behavior
Option 3: Income distribution
Option 4: Technological advancements
Correct Answer: Income distribution
Solution : The correct answer is (C) Income distribution
Demographic factors refer to characteristics and attributes of a population, such as age, gender, income, education level, occupation, and family structure. These factors can have a significant influence on consumer behavior, market demand, and business strategies. In the case of income distribution, it represents how income is divided among different segments of the population, such as high-income earners, middle-income earners, and low-income earners. Income distribution can impact consumer purchasing power, market segmentation, and pricing strategies. Therefore, income distribution is an example of a demographic factor.
