The figure given below shows the consumption function of a household.?Figure 9.2

-In Figure 9.2, the line segment AD represents:
A) autonomous consumption.
B) the maximum amount of saving.
C) negative consumption.
D) zero consumption.
E) autonomous expenditure.

Question

The figure given below shows the consumption function of a household.?Figure 9.2
 
-In Figure 9.2, the line segment AD represents:
A) autonomous consumption. 
B) the maximum amount of saving. 
C) negative consumption. 
D) zero consumption. 
E) autonomous expenditure.

Quizplus · Accepted Answer

The line segment AD represents autonomous consumption, which is the level of consumption that occurs when income is zero.

The Figure Given Below Shows the Consumption Function of a Household.?Figure