Question

5. Explain average propensity to consume (apc) marginal propensity to consume (mpc) with suitable diagrams

Answer 1

Explanation:

In economics, the average propensity to consume (APC) is the fraction of income spent. ... One minus the APC is the average propensity to save (APS). The average propensity to consume differs from the marginal propensity to consume (MPC), which is the fraction of incremental (marginal) income that is spent