Answer:
The correct answer is:
buying power (a.)
Explanation:
A consumer's buying power is the ability of a consumer to make a purchase. The higher the real income of a consumer, the greater the buying power of that individual. In this example, Mike with an annual income of $1 million has a purchasing power that is ten times greater than Fernanda's annual income of $100,000, this means that Mike is ten times more likely to pay for a product than Fernanda.
Inflation can also affect the buying power of an individual if the income remains the same and the price of the product or service increases.
