Kind of products bought with disposable income is to be explained.
Disposable income is the income that a person is left with after paying all the taxes. Disposable income is a part of income that is available to spend. Disposable income is calculated as:
Disposable income = Personal income - Personal income taxes
Necessities products are bought with disposable income by the people. Necessities products such as food, shelter and clothing. These product is necessary for every person to survive. Let us assume that a family has a monthly income of $20000, and their effective income tax rate is 20% which is $4000. So, the disposable income of the family would be $20000 - $4000 = $16000.
Chapter 3 Solutions
Economics Today and Tomorrow, Student Edition
Additional Business Textbook Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
PRIN.OF CORPORATE FINANCE
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Foundations Of Finance
Financial Accounting: Tools for Business Decision Making, 8th Edition
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education