Question

average propensity to consume APC is obtained by y- s , c/y, ∆c/∆y​

Answer 1

Explanation:

Marginal Propensity to Consume MPC = ∆C/∆Y

Thus, the proportion of income saved increases as income increases. The economic significance of the APC is that it tells us what proportion of the total cost of a given output from planned employment may be expected to be recovered by selling consumer goods alone.