Final answer:
When consumption is $820 and savings is $60, the disposable income is the sum of consumption and savings, which equals $880. Hence, the answer is C. $880.
Step-by-step explanation:
If consumption is $820 and savings is $60, then disposable income is calculated by adding the consumption and savings. Since consumption plus savings must equal disposable income, we use the formula:
Disposable income = Consumption + Savings
Substituting in the given values:
Disposable income = $820 + $60
Disposable income = $880
Therefore, the correct answer is C. $880.