Question

What is consumption propensity or consumption function ?

Answer 1

Answer:

The concept of propensity to consume (i.e., willingness to consume) or the so-called consumption function is based on a 'fundamental psychological law' which states that “men are disposed, as a rule, and on an average, to increase consumption as their income increases but not by as much as the increase in their income. ...

Explanation:

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Answer 2

Answer:

What is Consumption?

Consumption is the process of using up utility value of goods and services for the direct satisfaction of our wants. Utility value of goods means inherent capacity of goods and services to satisfy human wants