An implication of Figure 16.2 is that consumers:

Name: An implication of Figure 16.2 is that consumers:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Figure 16.2 shows a graph of consumption over time, with smooth consumption being exhibited by the gradual increase in consumption from period 1 to period 2. This suggests that consumers tend to smooth their consumption over time, rather than saving all their income in period 1 or always consuming the same amount. It does not necessarily indicate that consumers are risk takers or risk neutral.

An Implication of Figure 16.2 Is That Consumers