Question

4.Suppose one consumer wants to purchase clothes and books. Choose the necessary information to study the consumer’s choice.

(a) income of the consumer

(b) price of cloth

(c) price of books

(d) preferences of the consumer

(e) all of the above 

Answer 1

e) All of the above factors.

The primary factor to consider is consumer's income. Others include price of both products: clothes and books and you have to know what the consumer prefers most between cloths and books so as to know which product to buy more over the other.