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What is the relationship between APC …

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What is the relationship between APC and MPC

Posted by Siddharth Nigam 8 years ago

CBSE > Class 12 > Business Studies

1 answers

Siddharth Nigam 8 years ago

Propensity to consume or consumption function expresses the function relationship between total consumption and total income. It refers to the consumption expenditure at various levels of income. Symbolically it is expressed as C=f(y). The consumption function has two technical attributes or properties (a) Average propensity to consume are (b) marginal propensity consume. Average propensity to consume and Marginal propensity to consume.

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