Alan became interested in baby toys when his daughter was born. His interest in the toys declined when his daughter turned 2 yea
1 answer:
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Answer: Option (c) is correct.
Explanation:
Average propensity to consume refers to the fraction of income that is spent on consumption. It is determined by dividing the consumption level of an individual by income.
Average propensity to consume (APC) =
Hence, as the income of an individual increases, as a result average propensity to consume falls because the denominator part of an equation become more larger than the numerator part.