Draw the consumption function as the relation of the consumer's income and expenditure. What does the slope of the consumption function depend on? Is the consumer's income the only factor determining the level of his consumption spending?
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Draw the consumption function as the relation of the consumer's income and expenditure.
What does the slope of the consumption function depend on?
Is the consumer's income the only factor determining the level of his consumption spending?
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- Draw a consumption function for an individual whereS=-250+0.3Y. Show the change that would result from an increase in Income.The following table contains data on the relationship between saving and income. Rearrange these data into a meaningful order and graph them on the accompanying grid. What is the slope of the line? Interpret the meaning of the slope. What would you predict saving to be at the $12,500 level of income?What is it mean by full price and income when discussing household consumption?
- Q.1.2 Should a measure of wealth be included in the consumption function and, if so, what should that measure be? Has wealth in fact been found to be an important determinant of consumer expenditure?What is the type of consumption of household spending which is independentWhat determines the slope of a consumption function?
- The following table contains data on the relationship between saving and income. Rearrange these data into a meaningful order and graph them on the accompanying grid. What is the slope of the line? The vertical intercept? Interpret the meaning of both the slope and the intercept. Write the equation that represents this line. What would you predict saving to be at the $12,500 level of income?Ginting likes both orange juice and apple juice. He consumes nothing else. The consumption bundle where Ginting consumes XA bottles of orange juice per year and XB bottles of apple juice per year is written as (XA, XB). Last year, Ginting consumed 28 bottles of orange juice and 7 bottles of apple juice. Ginting is indifferent between (XA, XB) and (28,7) is the set of all bundles such that XB = 196/XA. The set of bundles (XA, XB) such that Ginting is just indifferent between (XA, XB) and the bundle (14, 21) is the set of bundles such that XB = 294/XA. A. Identify on the graph several points that lie on the indifference curve that passes through the point (28, 7), and sketch this curve, using blue ink. Do the same, using red ink, for the indifference curve passing through the point (14, 21). B. Use grey ink to shade in the set of commodity bundles that Ginting weakly prefers to the bundle (28, 7). Use blue ink to shade in the set of commodity bundles such that Ginting weakly prefers (14,…The consumption demand function merely states that as income goes up, households consume all their increased income
- Hello. can you please assist on the following question below Q.1 Use a diagram to explain the three main characteristics of the consumptionfunction.Calculate the equilibrium income by using the consumption function formula. 1. Y =C 2. Y= C+I 3. Y = C+I+G 4. Y= C+I+G+Nx Given: C = 100; I = 150; G = 100; m= 50; x=35; change in DY = 900; change in C = 630If the ratio of consumption C to income Y is c, then the ratio of income to consumption is: a. 1/(1+c) b. 1-c c. 1/c d. 1/(1-c)