What is autonomous consumption and induced consumption

Assignment Help Business Economics

Reference no: EM131173891

What is autonomous consumption? What is induced consumption? Suppose that the current consumption function for the nation is C = 500 + 0.8DI. What will happen to autonomous consumption if disposable income, DI, increases by 100? What will happen to induced consumption if DI increases by 100?

Reference no: EM131173891

Questions Cloud

Largest export partner and third largest source of imports : Canada currently is our largest export partner and third largest source of imports. In 2012, U.S. export of goods to Canada totaled $159 billion and U.S. imports from Canada totaled $176.9 billion.

Business communication-scenario on conflict : Linda Sims is the manager of the accounting department and Jose Martinez is the manager of the sales department for a production company. This is a fast growing firm, and the staff of the accounting department (11 employees) is often over whelmed wit..

Consider an economy with constant population : Consider an economy with a constant population in which people wish to hold bank checking deposits worth a total of 5,000 goods in every period. The economy has a total endowment of 10,000 goods in each period. The fiat money stock is $2,000 in every..

Double-breasting is legal under national labor relations act : Organized labor repeated its success in three previous presidential elections by delivering a very large majority of union members for Obama. The sit-down strike helped the CIO to obtain union membership in the 1930s, and it was soon approved by the ..

What is autonomous consumption and induced consumption : What is autonomous consumption? What is induced consumption? Suppose that the current consumption function for the nation is C = 500 + 0.8DI. What will happen to autonomous consumption if disposable income, DI, increases by 100? What will happen to i..

The property of diminishing marginal utility for both goods : Explain why it must be true that if a consumer's preferences satisfy the property of diminishing marginal utility for both goods (normal goods and inferior goods) that consumer's indifference curves for those goods will also be convex.

Arise in the international business setting : Identify the most common ethical issues that may arise in the international business setting. Explain the root cause of these issues. Discuss how managers of international firms should address these issues.

The price elasticity of demand for labor will depend : The price elasticity of demand for labor will depend upon all but the:

Find the producer surplus at the equilibrium price : Find the equilibrium point. Find the consumer surplus at the equilibrium price. Find the producer surplus at the equilibrium price.

User Account

All Pages