Suppose when Sue's disposable income is $10,000, she spends $8,000, and when her disposable income is $20,000, she spends $14,000. Sue's autonomous consumer spending is equal to _and her MPS is equal to
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- What are the nonincome determinants of Consumption and Savings?Suppose that John's MPC is constant at 4/5. If he had no income at all, he would have to borrow $2,000 to meet all his expenses. Graph John's consumption function and write it out algebraically. Using the formula for John's consumption function, find his break-even point.In the graph below, the firm experiences IRTS. CRTS and DRTS SRATC(K,) SRATC(K,) SRATC(K,) SRATC(K,) Po Ps LRAC PA P3 P2 P1 Q, Q, O between Q, and Qa: between Qa and Qe: between O and Q between 0 and Q2; between Q2 and Qs: between Qs and Qa. O between Q, and Qu: at Q: between 0 and Q4. O between O and Q: between Q, and Q7; between Q, and Qa. O between O and Q: at Qu; between Q, and Qa between O and Q at Qu: between Q4 and Qa
- The accompanying graph represents the aggregate consumption function for the small island nation of Pineapple Paradise. The people of Pineapple Paradise expect their future 10,000 disposable income to increase. Use the graph to show an 9,000 increase in consumption expenditures. 8,000 7,000 What is the new level of aggregate autonomous consumer ,000 Aggregate Consumption Function spending? ,000 $2000 4,000 $4000 3,000 $1000 O $3000 2,000 1,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Disposable Income Çonsumer Spending,2. What is the domain and range of the consumption function C = 12 + 0.3Y? Write them as a set. What is the economic interpretation of 0.3 here?Using the Lagrange multiplier, calculate the marginal cost ofproducing an additional unit of output at the cost minimising point?
- Explain the relationship between MPL and MCIf Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to O save is 3/5. O consume is 1/2. O consume is 3/5. O consume is 2/5.Identify any three non‐income determinants of consumption
- You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)What is it mean by full price and income when discussing household consumption?Give an example of any factor that influence the size of the multiplier
