Consumption At Different Levels Sample Assignment

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Consumption At Different Levels Sample Assignment

pose the value of a = 40, and b = 0.6, then consumption at different levels of income can be estimated as follows :

If Y – 0,then      C = a + by
                           = 40 + 0.6 X 0
                           =  40
If Y =100,then   C = 40 + 0.6 X 100
                           =40 + 60 = 100

Similarly, consumption at different levels of income can be calculated as shown in table 5.2
                                        Table 5.2 : Consumption Schedule
                                          (Assumption a =40, and b=0.6)
 
           Income (y)
   Consumption (C)
              0
                40
            100
               100
            200
               160
            300
                220
            400
                280
            500
                340

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