Concept explainers
Marginal Propensity to Consume In
Exercises 59 and 60, (a) use the marginal propensity to consume, dQ/dx, to write Q as a function of x, where x is the income (in dollars) and Q is the income consumed (in dollars). Assume that families who have annual incomes of $25,000 or less consume 100% of their income. (b) Use the result of part (a) and a spreadsheet to complete the table showing the income consumed and the income saved, x - Q, for various incomes. (c) Use a graphing utility to represent graphically the income consumed and saved. See Example 8.
X | 25,000 | 50,000 | 100,000 | 150,000 |
Q | ||||
x-Q |
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