CUET Preparation Today
| What does this function denote C= 750 + 0.6Y? |
At, 0 level of income a person will consume Rs 750 worth of goods. With 1 Re decrease in income consumption will increase by 60 paise. At, 0 level of income a person will consume Rs 750 worth of goods. With 1 Re increase in income consumption will increase by 60 paise. At, 0 level of income a person will consume Rs 750 worth of goods. With 1 Re increase in income consumption will increase by 6 rupees. At, 0 level of income a person will consume Rs 750 worth of goods. With 1 Re increase in income consumption will increase by 60 rupees. |
| At, 0 level of income a person will consume Rs 750 worth of goods. With 1 Re increase in income consumption will increase by 60 paise. |
| Equation of consumption function is written as: C= c + bY Where, C = Total consumption, c = autonomous consumption, b = MPC and Y= change in Income |
