The table given below reports the consumption expenditure of a nation at different levels of disposable income.?

-Refer to Table 9.1. Autonomous consumption expenditure in this nation will be equal to:
A) $10,000.
B) $5,500.
C) $4,500.
D) $3,000.
E) $4,000.

Question

The table given below reports the consumption expenditure of a nation at different levels of disposable income.?
 
-Refer to Table 9.1. Autonomous consumption expenditure in this nation will be equal to:
A) $10,000. 
B) $5,500. 
C) $4,500. 
D) $3,000. 
E) $4,000.

Quizplus · Accepted Answer

Autonomous consumption expenditure is the amount of consumption expenditure that would still occur even if disposable income was zero, i.e., the intercept of the consumption line. From the table, we can see that consumption expenditure is $9,000 when disposable income is zero. Therefore, autonomous consumption expenditure is $9,000 - $4,500 (when disposable income is $0) = $4,500. Thus, the correct answer is C.

The Table Given Below Reports the Consumption Expenditure of a Nation