Answer:
The APC before change in disposable income was 0.75.
Explanation:
The average propensity to consume shows the part of income that is is consumed. It can be calculated as the ratio of total disposable income to total consumption.
The disposable income is given as $200 billion, the consumption level is $150 billion, the savings level is $50 billion.
Average propensity to consume is
=
=
= 0.75
So, the average propensity to consume is 0.75.
Answer:
PV=1,175
Explanation:
this question can be solved thinking as if we have a perpetuity, it is a future infinite payments, but in this particular case we have those payments (dividends) increasing over the time, so we can apply the next formula:
where PV is the present value of the future payments, i is the interest rate and k is the annual increasing, so applying to this data we have:
If a tax is levied on the sellers of a product, then the demand curve will become flattered.
Option A. becomes flattered.
If a tax is levied on sellers of a product, then the supply decreases, the supply curve will shift to the left. The demand curve will not shift. This is shown in the following figure;
S+tax Price E1 pl p 0 q1 q Quantity х
In the above figure, the x-axis shows quantity and the y-axis shows the price. D is the demand curve and S is the supply curve. As a result of the tax, the supply curve will shift to the left. The price increases from p to p1 and quantity decreases from q to q1.
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