Garrett has an annual income of $1 million. Sarah has an annual income of $100,000. Their buying behaviors differ because of their ability to buy, called their ___, which is largely determined by income.

Question

​Garrett has an annual income of $1 million. Sarah has an annual income of $100,000. Their buying behaviors differ because of their ability to buy, called their ___, which is largely determined by income.

Quizplus · Accepted Answer

Buying power refers to the amount of goods and services that can be purchased with a certain amount of income. As Garrett has a much higher annual income than Sarah, his buying power is significantly greater, allowing him to purchase more expensive products and higher quantities of goods and services. This has a significant impact on their buying behaviors and the types of products they are able to afford.

​Garrett Has an Annual Income of $1 Million

Garrett Has an Annual Income of $1 Million