Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 1.A, Problem 2P
To determine
The relationship between the income and consumption.
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Research conducted a survey to find out whether people who earn more money
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Income
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(Thousands of
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0.
10
20
15
40
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30
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In the diagram below, draw the graph corresponding to the above table.
The accompanying table shows a portion of quarterly data for real personal consumption (Consumption in $) and real personal
disposable income (Income in $) for the years 2000-2019.
Date
Q1,2000
Q2, 2000
A
Q4,2019
Consumption
8520.71
8603.01
⠀
13411.94
Income
9338.68
9441.95
1
15100.13
pictureClick here for the Excel Data File
a. Construct a scatterplot of Consumption against Income. Given the scatterplot, which statement best describes the relationship
between Consumption and Income?
O Consumption and Income have a positive relationship.
O Consumption and Income have a negative relationship.
O Consumption and Income have no relationship.
O Consumption and Income have a U-shaped (nonlinear) relationship.
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