Suppose a curve shows that every time family income increases by $1,spending increases by $.75.If spending increases by $500,then income increased by
A)$667.
B)$500.
C)$375.
D)$125.

Question

Quizplus · Accepted Answer

If spending increases by $500 and the spending increase is $0.75 for every $1 increase in income, then the income increase is $500 / 0.75 = $666.67, which rounds to $667.

Suppose a Curve Shows That Every Time Family Income Increases