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Because discretionary Income = The money people have left over once they have paid for all of their basic requirements (Food, Clothing, Shelter). You could also call it Disposable Income because it is money you have (hopefully) that you can spend on whatever you want. If people do not have very much discretionary income then they cant buy all kinds of useless stuff that marketers are trying to sell them. This would limit the potential demand for a good or service.
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How is discretionary income calculated?
Discretionary income is calculated by taking your gross income minus your expenses and what you are left with is discretionary income. Most Americans do not have a large amount of discretionary income.
How do households spend most of their discretionary income?
Households spend most of their discretionary income on consumption.
What is the difference between disposable income and discretionary income?
Formulas are: Disposable income = consumption expenditure + savings - support of others; Discretionary income = Gross income - taxes - necessities. Although denotatively wrong, disposable income is commonly used to denote discretionary income.
What kinds of products are purchased with discretionary income?
Discretionary income is mone income a person has left to spend on extras after necessities have been bought so any left over income can be saved or spent on extras such as luxury items or entertainment.
What is the primary disadvantage of having a total consumption budget?
there is no discretionary income
Would personal income disposable income or discretionary income be of the greatest interest to marketers?
Discretionary income, not personal income or disposable income, would be the greatest interest to marketers.
How is discretionary income calculated?
Discretionary income is calculated by taking your gross income minus your expenses and what you are left with is discretionary income. Most Americans do not have a large amount of discretionary income.
How do households spend most of their discretionary income?
Households spend most of their discretionary income on consumption.
What is the between disposable income and discretionary income?
Formulas are: Disposable income = consumption expenditure + savings - support of others; Discretionary income = Gross income - taxes - necessities. Although denotatively wrong, disposable income is commonly used to denote discretionary income.
What is the different disposable income and discretionary income?
Formulas are: Disposable income = consumption expenditure + savings - support of others; Discretionary income = Gross income - taxes - necessities. Although denotatively wrong, disposable income is commonly used to denote discretionary income.
What is the different between disposable income and discretionary income?
Formulas are: Disposable income = consumption expenditure + savings - support of others; Discretionary income = Gross income - taxes - necessities. Although denotatively wrong, disposable income is commonly used to denote discretionary income.
What is the difference between disposable income and discretionary income?
Formulas are: Disposable income = consumption expenditure + savings - support of others; Discretionary income = Gross income - taxes - necessities. Although denotatively wrong, disposable income is commonly used to denote discretionary income.
What has the author Fabian Linden written?
Fabian Linden has written: 'A marketer's guide to discretionary income' -- subject(s): Statistics, Discretionary income, Income 'Consumer affluence'
What items would be paid for with discretionary income?
Anything can be paid for with discretionary income. That's what makes it discretionary. "Discretionary income" isn't a real "thing". It's actually all just income. "Discretionary" income refers to what's left over after you've paid for necessities: food, water, shelter, taxes, "fixed costs", things like that. So, probably the item among the following that isn't actually a NEED is the one the question is looking for.
What is the money left over after paying your necessary expenses called?
Discretionary Income Discretionary income = Gross income - taxes - all compelled payments (bills) Reference: http://en.wikipedia.org/wiki/Disposable_and_discretionary_income
What kinds of products are purchased with discretionary income?
Discretionary income is mone income a person has left to spend on extras after necessities have been bought so any left over income can be saved or spent on extras such as luxury items or entertainment.
Is it true that a general decrease in people's discretionary income will lead to a decrease in cost of living and living standards?
A general decrease in discretionary income generally leads to a decrease in living standards.
