Consumption At Different Levels Sample Assignment
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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)
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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