Question

C is positively related to Y but C is not zero when Y is zero why? *​

Answer 1

Equations of straight lines are in the form y = mx + c (m and c are numbers). m is the gradient of the line and c is the y-intercept (where the graph crosses the y-axis).

Answer 2

Here:

C= consumption of a product

Y= Income of  a person

• Since, C is the consumption of a product, it cannot be zero. If Y is zero, i.e. the person does not has any source of income then even he will have the consumption C of a product.
• If the income of the person is zero he would borrow the product from someone else.

Hence, hen C is positively related to Y, C cannot be zero when Y is zero.