Factors That Determine Consumers' Willingness and Ability to Pay for Goods

question 264

Multiple Choice

Factors that determine consumers' willingness and ability to pay for goods and services are called:

• A)economic environmental factors.
• B)elasticity factors.
• C)demand factors.
• D)the "misery index."

---

Definitions:

Revenue

The total income generated from the sale of goods or services, before any costs or expenses are deducted.

Assets

Economic resources owned by a business or individual that are expected to bring future benefits.

Liabilities

Monetary liabilities or dues that a company or person has to pay back to lenders.

Equity

The value that would be returned to a company's shareholders if all of the assets were liquidated and all of the debts were paid off.