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11 July, 19:45

Suppose the different income levels are as follows. usi c=120+0.65y and y = 100,120,125,140,80,115,145,150,166,200. calculate the corresponding consumption levels using the relationship specified

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  1. 11 July, 20:04
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    All you have to do is substitute the y values to the equation to solve the corresponding c values which stands for the consumption levels. To illustrate the solution,

    when y = 100,

    C = 120+0.65 (100)

    C = 185

    when y = 120,

    C = 120+0.65 (120)

    C = 198

    when y = 125,

    C = 120+0.65 (100)

    C = 201.25

    And so on and so forth. The answers would be:

    y C

    100 185

    120 198

    125 201.25

    140 211

    80 172

    115 194.75

    145 214.25

    150 217.5

    166 227.9

    200 250
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