Question

Consumers’ willingness to pay depends on their (blank) income and prices of related goods.

Answer 1

Answer: Consumer's willingness to pay depends on their disposal income and prices of related goods.

Step-by-step explanation:

Consumer's willingness to pay depends on their disposal income and prices of related goods.

Disposal income is the income after deducting taxes and ready to spent on buying the products.

If the income of the consumer increases, demand for normal goods will also increase, as there is direct relationship between normal goods and disposal income.

Answer 2

Consumers’ willingness to pay depends on their disposable (or discretionary) income and prices of related goods.