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)?

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

• 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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