Suppose a curve shows that every time family income increases by $1, spending increases by $.80. If family income increases by $100, then spending will increase by
A)$8.
B)$20.
C)$80.
D)$800.
E)$200.

Question

Quizplus · Accepted Answer

If $1 increase in income results in a $.80 increase in spending, then a $100 increase in income would result in a $80 increase in spending. Therefore, the answer is C.

Suppose a Curve Shows That Every Time Family Income Increases