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What is Average propensity to consume? - Economics

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Question

What is Average propensity to consume?

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Solution

The Average Propensity to Consume (APC) is an economic concept that represents the proportion of total income spent on consumption. It is defined as the ratio of total consumption expenditure to total income at a specific level of income.

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Chapter 18: Consumption Function {Propensity to Consume) - TEST QUESTIONS [Page 18.16]

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R. K. Lekhi and P. K. Dhar Economics [English] Class 12 ISC
Chapter 18 Consumption Function {Propensity to Consume)
TEST QUESTIONS | Q A. 3. | Page 18.16
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