Consumers pay for necessities out of their discretionary income.

Question

Quizplus · Accepted Answer

Consumers pay for necessities out of their non-discretionary income, which is the portion of their income that is allocated for essential expenses such as housing, food, and healthcare. Discretionary income, on the other hand, is the amount of money that is left over after essential expenses are paid and can be used for non-essential purchases such as entertainment and travel.

Consumers Pay for Necessities Out of Their Discretionary Income