People consume goods and services. Consumption involves the use of goods and services in order to satisfy wants. People will spend their Disposable Income (The income a person has after taxation) wisely to get the maximum satisfaction or utility from goods and services.
The more disposable income a person has, the more his potential consumer expenditure.
Factors that affect disposable income
- Wealth
- Interest Rates.
- Consumer Confidence
0 comments:
Post a Comment