We assume consumption function takes the linear form: » (a) the change of consumption when income increases from 3 million to 4 million. • (b) the change of consumption when income increases from 20 million to 21 million. Question: Is (a) equal to (b)?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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• We assume consumption function takes the linear form:
» (a) the change of consumption when income increases from 3
million to 4 million.
» (b) the change of consumption when income increases from 20
million to 21 million.
Question: Is (a) equal to (b)?
Transcribed Image Text:• We assume consumption function takes the linear form: » (a) the change of consumption when income increases from 3 million to 4 million. » (b) the change of consumption when income increases from 20 million to 21 million. Question: Is (a) equal to (b)?
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