There is acute shortage of electricity in some of the states in India. This reflects a problem in which type of business environment ?
Economic
The business environment is usually split into economic, demographic, politico-legal, socio-cultural, technological and natural components, and each problem is placed according to the factor that causes it.
Electricity supply is part of a country's infrastructure (power, transport, communication). Infrastructure, along with growth, inflation, resources and economic policy, forms the economic environment, because a power shortage directly raises costs, cuts output and holds back industrial investment.
Demographic factors deal with the size, age and spread of the population; the politico-legal environment covers government stability, laws and regulation; the socio-cultural environment covers values, customs and lifestyles. A shortfall in generating capacity is none of these.
Hence, Economic.
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