When a person receives an increase in wealth, Consumption increases and saving decreases
Both present and future consumption rises as a consumer's current income does as well. Savings increase because current spending increases but does so at a slower rate than current income growth. Again, both present and future consumption rises when the customer receives an increase in predicted future income.
Savings declines because current consumption rises while current income does not. Current and future consumption both grow when the consumer's wealth increases. Again, because current income has not increased, saving has decreased. These individual actions to adjust one's consumption and saving habits have a cumulative effect on the aggregate amount of desired consumption and saving.
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a. Advertisement cost relative to number of customers <u>Fixed
</u>
b. Rental cost relative to number of restaurant <u>Variable
</u>
c. Cooks salaries relative to number of customer <u>Fixed
</u>
d. Cost of Supplies (cups, plates, spoons, etc.) relative to number of customer <u>Variable
</u>
e. Manager's compensation relative to number of customer <u>Mixed
</u>
f. Servers' salaries relative to number of Restaurants <u>Variable</u>
