The figure given below represents the consumption function of a country.
Figure 9.3

-Refer to Figure 9.3. When disposable income is $800, consumption spending must equal:
A) $200.
B) $700.
C) $600.
D) $800.
E) $400.

Question

The figure given below represents the consumption function of a country.
Figure 9.3
 
-Refer to Figure 9.3. When disposable income is $800, consumption spending must equal:
A) $200. 
B) $700. 
C) $600. 
D) $800. 
E) $400.

Quizplus · Accepted Answer

When disposable income is $800, we can see from the graph that the corresponding consumption spending is $600. Thus, the answer is choice C.

The Figure Given Below Represents the Consumption Function of a Country