Advertisements
Advertisements
Question
Income rises from ₹ 50,000 to ₹ 60,000, consumption increases from ₹ 40,000 to ₹ 48,000. In this situation, what will be the value of Marginal Propensity to Consume (MPC)?
Options
0.80
0.20
0.10
0.90
MCQ
Advertisements
Solution
0.80
Explanation:
MPC = `(Δ"C")/(Δ"Y")`
= `(8,000)/(10,000)`
= 0.80
shaalaa.com
Is there an error in this question or solution?
