Refer to the information provided in Figure 1.5 below to answer the question(s) that follow. Figure 1.5
-Refer to Figure 1.5. As income increases, consumption increases, but for each additional increase in income, consumption increases by a larger and larger amount. If consumption is graphed on the vertical axis and income is graphed on the horizontal axis, the relationship between consumption and income would look like which of the following Panels?
A) A
B) B
C) C
D) D

Question

Refer to the information provided in Figure 1.5 below to answer the question(s) that follow.  Figure 1.5
-Refer to Figure 1.5. As income increases, consumption increases, but for each additional increase in income, consumption increases by a larger and larger amount. If consumption is graphed on the vertical axis and income is graphed on the horizontal axis, the relationship between consumption and income would look like which of the following Panels?
A) A 
B) B 
C) C 
D) D

Quizplus · Accepted Answer

The graph shows that as income increases, consumption increases, but at a decreasing rate. This is because as people earn more money, they tend to save more of it.

Refer to the Information Provided in Figure 1