Explanation Given information: The consumption function of U.S. economy from 1929 to 1941 is, C ( x ) = 0.712 x + 95.05 Where, C ( x ) is personal consumption expenditure and x is the personal income. The rate of change of consumption with respect of income ( d C ( x ) d x ) is called the marginal propensity to consume. Calculation: The marginal propensity to consume is calculated as, ( d C ( x ) d x ) Substitute 0.712 x + 95

Applied Calculus for the Managerial, Life, and Social Sciences (MindTap Course List)

10th Edition

ISBN: 9781305657861

Author: Soo T. Tan

Publisher: Cengage Learning

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Chapter 3.4, Problem 18E

To determine

The rate of change of consumption with respect of income.

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Chapter 3.4, Problem 17E

Chapter 3.4, Problem 19E

Chapter 3 Solutions

Applied Calculus for the Managerial, Life, and Social Sciences (MindTap Course List)

Ch. 3.1 - State the following rules of differentiation in...Ch. 3.1 - Prob. 2CQ Ch. 3.1 - Prob. 3CQ Ch. 3.1 - Prob. 4CQ Ch. 3.1 - Prob. 1E Ch. 3.1 - Prob. 2E Ch. 3.1 - Prob. 3E Ch. 3.1 - Prob. 4E Ch. 3.1 - Prob. 5E Ch. 3.1 - Prob. 6E

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The rate of change of consumption with respect of income.

Solution Summary: The author explains that the rate of change of consumption with respect to income is 0.712.

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