Step3, part b of the question: it asks for equilibrium level of C. If formula for C is C= 1000+ 0.8Yd, then since at equilibrium Y=7000 shouldn't C be equal to C= 1000 + 0.8(7000-350) = 6320? If so, than the last part of the question regarding S should be 7000-6320= 680 Please let me know where I am wrong
Step3, part b of the question: it asks for equilibrium level of C. If formula for C is C= 1000+ 0.8Yd, then since at equilibrium Y=7000 shouldn't C be equal to C= 1000 + 0.8(7000-350) = 6320? If so, than the last part of the question regarding S should be 7000-6320= 680 Please let me know where I am wrong
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Step3, part b of the question: it asks for equilibrium level of C.
If formula for C is C= 1000+ 0.8Yd,
then since at equilibrium Y=7000
shouldn't C be equal to
C= 1000 + 0.8(7000-350) = 6320?
If so, than the last part of the question regarding S should be 7000-6320= 680
Please let me know where I am wrong
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