Economics Interview Question:

Why marketers are interested in discretionary income?

Submitted by: Administrator

Because discretionary Income = the money people have left over once they have paid for all of their basic requirements (Food, Clothing, Shelter).

You could also call it Disposable Income because you can spend on whatever you want.

If people do not have very much discretionary income then they cannot buy all kinds of useless stuff that marketers are trying to sell them.

This would limit the potential demand for a good or service.
Submitted by: Administrator