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

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

When income is less than consumption, value of Average Propensity to Consume (APC) is.

More than 1.

The correct answer is Option (1) → More than 1.

Average Propensity to Consume (APC) = Consumption / Income 

When consumption is greater than income, the numerator is larger than the denominator, so:

APC=Consumption/ Income>1

Example from the table:

At Income = ₹50 crore, Consumption = ₹75 crore

APC = 75/50 = 1.5 ⇒More than 1

Therefore, when income is less than consumption, APC is more than 1.

The scenario of income being less than consumption typically occurs at lower levels of income where individuals or households are dissaving (consuming more than they earn).