Which of the following enabled the rising purchase of consumer goods?

• A. A reduction in the availability of goods
• B. Higher interest rates on consumer loans
• C. An increase in household incomes
• D. A decrease in consumer preferences for goods

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the question is asking about the factor that enabled the rising purchase of consumer goods, which relates to demand-side influences in microeconomics.
2. Step 2: Analyze each option in terms of its effect on consumer purchasing behavior: a reduction in availability typically decreases purchases, higher interest rates on loans make borrowing more expensive and reduce purchases, an increase in household incomes increases consumers' purchasing power, and a decrease in consumer preferences lowers demand.
3. Step 3: Recall the basic demand principle that an increase in income generally shifts the demand curve for normal goods to the right, leading to higher quantities purchased.
4. Step 4: Recognize that higher interest rates and reduced availability act as constraints, reducing the quantity demanded or purchased.
5. Step 5: Conclude that among the options, an increase in household incomes is the factor that enables rising purchases of consumer goods by increasing consumers' ability to buy more.