$$\begin{array} { | c | c | }
\hline \text { Disposable Income } & \text { Consumption } \
\hline \$ 300 & \$ 310 \
\hline 350 & 340 \
\hline 400 & 370 \
\hline 450 & 400 \
\hline 500 & 430 \
\hline
\end{array}$$ The table shows a consumption schedule. If disposable income is $550, we would expect consumption to be
A) $430.
B) $450.
C) $460.
D) $470.

Question

$$\begin{array} { | c | c | } 
\hline \text { Disposable Income } & \text { Consumption } \
\hline \$ 300 & \$ 310 \
\hline 350 & 340 \
\hline 400 & 370 \
\hline 450 & 400 \
\hline 500 & 430 \
\hline
\end{array}$$ The table shows a consumption schedule. If disposable income is $550, we would expect consumption to be
A) $430.
B) $450.
C) $460.
D) $470.

Quizplus · Accepted Answer

There seems to be a linear relationship between disposable income and consumption, with an increase in disposable income resulting in an increase in consumption. Based on this trend, we can estimate that at a disposable income of $550, consumption would be around $460 (interpolating between the last two data points). Therefore, the best choice is C.

The Table Shows a Consumption Schedule