Question

if consumption function is C= 40+0.8y then determine the level of income where APC will be unity​

Answer 1

Answer:

level of income = 200

Explanation:

solution :

given :C=40+0.8Y

suppose ,Y=C

or ,C=Y

therefore, we get the value of C

now let's put the value of C in the given equation , we get

C = 40+0.8Y

Y= 40+0.8Y

Y-0.8Y=40

0.2Y=40

Y=40/0.2

Y=200

level of Y will be 200,then APC=C/Y=1