Read the passage carefully and answer the questions based on the passage:

Calculate various parameters of Aggregate Demand, Aggregate Supply and related concepts

Calculate Marginal Propensity to Save (MPS) and Average Propensity to Consume (APC) at income level of 200.

MPS = 0.5; APC = 0.75

The correct answer is Option (3) → MPS = 0.5; APC = 0.75

1. MPS= ΔS​/ ΔY

We need to find the change in Saving and Income around the income level of ₹200 crore.

ΔS= 50 - 0 = 50

ΔY= 200- 100 = 100

MPS = 50/100 = 0.5

2. Average Propensity to Consume (APC)  = Consumption /Income

                                                                     = 150 /200 = 0.75