Question

Given below is the consumption function in an economy :
C=100+0.5y
with the help of a numerical example show that in this economy as income increase APS will decrease. ​

Answer 1

Answer:

Determination of Income and Employment. In an economy consumption function is given as C = 100 + 0.5 Y. With the help of a numerical example show that as income increases, APC will decrease. ... Consumption level C = 300 + 5/10 x 1000 = 300 + 500 = र 800 crores.