Autonomous consumption

Autonomous consumption is defined as the expenditures that consumers must make even when they have no disposable income. Certain goods need to be purchased, regardless of how much income or money a consumer has in their possession at any given time. When a consumer is low on resources, paying for these necessities can force them to borrow or access money that they had previously been saving.

Sources:

Autonomous consumption. (2024). Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/economics/autonomous-consumption/