Question

Given the aggregate consumption function C=0.9y+100 find the mpc and apc and find elasticity of consumption with respect to income show that it equals mpc and apc​

Answer 1

Answer:

Consumption function denotes the functional relation between consumption and income. Whereas the MPC refers to the marginal increase in consumption (∆C) as a result of marginal increase in income (∆Y), APC means the ratio of total consumption to total income (C/Y):

Explanation:

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