CFA Level I · CFA Level I Exam · Industry and Competitive Analysis
An analyst studies a growth-stage industry and a mature industry. A demographic shift toward an older population is most likely to be an external factor that:
An older population most likely raises long-term demand for healthcare services and shifts consumer spending patterns. Demographic change is an external factor that reshapes demand across sectors over time. It would not reduce healthcare demand, and its effect on consumer sectors is meaningful rather than negligible.
- Alowers demand for healthcare services and retirement housing
- Bhas little effect on long-term demand across consumer sectors
- Craises long-term demand for healthcare services and shifts consumer spending patternsCorrect
Explanation
Demographics are a key external factor. An aging population increases healthcare use and changes consumption toward different goods and services. It does not lower healthcare demand, and the effect on sectors is material rather than negligible.
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