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Economics-what is the average propensity to consumeand the marginal propensity toconsume?

Answer:

If

disposable income Yd desired consumption "C" average propensity to

consume APC=

C/Yd

--------------------------- ----------------------------- ---------------------------

o 100

100 180 1.800

400 420

change in "C"=420-180= 240

change in "y"= 400-100= 300

marginal propensity to consume= change in"C"/CHANGE IN"Y"=

240/300=O.80

First answer by Seffian safe. Last edit by Seffian safe. Contributor trust: 16 [recommend contributor recommended]. Question popularity: 1 [recommend question].

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