-When disposable income is 2500,induced consumption is

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Quizplus · Accepted Answer

Induced consumption refers to the portion of consumption that changes in response to a change in disposable income. If disposable income is 2500, and assuming a positive relationship between disposable income and consumption (as is typical in economic models), a value of 500 for induced consumption suggests an increase in consumption due to the increase in disposable income, which is a plausible scenario. Negative values or values equal to the total disposable income are less typical for representing induced consumption alone.

-When Disposable Income Is 2500,induced Consumption Is