In a market system, a consumer's willingness to pay-but not his ability to pay-is based on his income.

Name: In a market system, a consumer's willingness to pay-but not his ability to pay-is based on his income.
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A consumer's willingness to pay is based on their perceived value of the good or service, not just their income. Ability to pay does play a factor in willingness to pay, but other factors such as personal preferences and perceived alternatives also play a role.

In a Market System, a Consumer's Willingness to Pay-But Not