Question

A certain economy's consumption function is given by the equation C(x) = 0.65x + 9 where C(x) is the personal consumption expenditure in billions of dollars, and x is the disposable personal income in billions of dollars. Find C(0), C(50), and C(100).

Answer 1

Answer:

1) $C(0) = 9$

2) $C(50) =41.5$

3) $C(100) =74$

Step-by-step explanation:

Given : A certain economy's consumption function is given by the equation $C(x) = 0.65x + 9$

where, C(x) is the personal consumption expenditure in billions of dollars, and x is the disposable personal income in billions of dollars.

To find :

1) C(0)

Put x=0 in the given equation,

$C(0) = 0.65(0)+ 9$

$C(0) = 9$

2) C(50)

Put x=50 in the given equation,

$C(50) = 0.65(50)+ 9$

$C(50) =32.5+9$

$C(50) =41.5$

3) C(100)

Put x=100 in the given equation,

$C(100) = 0.65(100)+ 9$

$C(100) =65+9$

$C(100) =74$