Question

explain consumer expenditure with the help of schedule and diagram​

Answer 1

Let us understand consumption function .

production of goods and services, leading to increase in induced investment and hence. National Income. On the other hand, savings are considered as leakages from the circular flow of income by reducing consumption demand and hence production,- investment and National Income also fall.

The point B in the diagram represents the break-even point where the consumption expenditure equals to the income.