Question

Think back to a purchase that you made recently. How would you describe your thinking before you made that purchase?

Short answer

I considered my projected future earnings and decided that getting a phone that was the greatest option for me, which is exactly what I was thinking when I purchased the phone.

Step-by-step solution

Definition

Income

The change in an individual's income has the opposite effect on their consumption. Individual households' consumption decisions are heavily influenced by their income.

Step 2:Explanation

I recently purchased a phone from a store.

Prior to making the purchase, I considered the fact that I needed a phone because my fashioned one had stopped working. So my demand was based on the necessity of a phone in my life, as well as my personal tastes and preferences, as I have long desired a good phone. There was a financial constraint. I purchased the phone because it was less than or equal to the amount I had set aside for a phone purchase. This purchase was mostly motivated by the value I placed on the phone and my financial constraints.

My budget restriction was to purchase a phone for less than $1000, and I purchased the phone since it was just under $1000.

Conclusion

Therefore, it essentially means that if I charge more than $1000, my level of satisfaction will not be met.