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Hitman42 [59]
2 years ago
5

The marginal propensity to consume tells us by how much ______ changes when ______ changes. a. consumption expenditure; disposab

le income
Business
1 answer:
Stells [14]2 years ago
3 0

The marginal propensity to consume tells us by how much consumption expenditure changes when disposable income  changes.

<h3>What is marginal propensity?</h3>

In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.

<h3>What is the MPC and MPS?</h3>

Key Takeaways. The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent.

Learn more about marginal propensity here:

<h3>brainly.com/question/17930875</h3><h3 /><h3>#SPJ4</h3>
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The journal entry to record the acquisition of land and a building by issuing common stock
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Answer:

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Explanation:

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A manufacturer sells a product for $5 per unit to a wholesaler who sells it at a markup of 60%, based on manufacturer selling pr
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Answer:

Option (b) 25% muc, 20% musp

Explanation:

Data provided in the question:

Selling cost of manufacturer = $5

Markup by wholesaler = 60%

Amount added by retailer = $2

Now,

Selling cost of wholesaler = $5 × (1 + Markup)

= $5 × (1 + 0.60)

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thus,

Selling price of retailer = $8 + $2 = $10

Therefore,

%muc retailer = [ Amount added by retailer] ÷ [Selling price of wholesaler]

= $2 ÷ $8

= 0.25 or 25%

%musp retailer = [ Amount added by retailer] ÷ [Selling price of retailer]

= $2 ÷ $10

= 0.20 or 20%

Hence,

Option (b) 25% muc, 20% musp

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