O Macmillan Learning The graph represents consumption (C) as a function of disposable income (DI). Assume the consumption function is linear. What is the value of the marginal propensity to consume (MPC)? Round the value of the MPC to two decimal places. Consumption $1050 900 MPC = 750 600 450 300 150 C = DI C 0 $150 300 450 600 750 900 1050 Disposable income
O Macmillan Learning The graph represents consumption (C) as a function of disposable income (DI). Assume the consumption function is linear. What is the value of the marginal propensity to consume (MPC)? Round the value of the MPC to two decimal places. Consumption $1050 900 MPC = 750 600 450 300 150 C = DI C 0 $150 300 450 600 750 900 1050 Disposable income
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 10P
Question

Transcribed Image Text:O Macmillan Learning
The graph represents consumption (C) as a function of
disposable income (DI). Assume the consumption function is
linear. What is the value of the marginal propensity to
consume (MPC)?
Round the value of the MPC to two decimal places.
Consumption
$1050
900
MPC =
750
600
450
300
150
C = DI
C
0
$150 300 450
600 750 900 1050
Disposable income
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