Consumption function, Managerial Economics

Assignment Help:

The Consumption Function

The consumption function is the relationship  [expressed in mathematical or diagrammatic form] between planned consumption and other independent variables, particularly income.

The consumption function is one of the most important relations in Macro-economics.  Consumption is the largest single component of aggregate expenditure and if we are to predict the effects of income and employment of variations in private investment and in government spending, we must know how consumption varies in response to changes in income.  Thus it is important to take a closer look at the consumption.


Related Discussions:- Consumption function

Relation between average cost and marginal cost, Q. Relation between averag...

Q. Relation between average cost and marginal cost? Relationship between MC and AC are the following: If MC is below AC then AC should be falling. This is because, if MC

Accomplish the desired outcome, Suppose that the present level of income in...

Suppose that the present level of income in the economy is $700 billion. It is determined that in order to decrease the unemployment rate to the desired level, it will be essential

Evaluate the marketing strategy, Joe is evaluating the marketing strategy a...

Joe is evaluating the marketing strategy at his restaurant and inn. Suppose that in response to a $2.00 off sales promotion for spaghetti dinners, Joe finds that nightly dinner sal

What are important external forces of managerial economics, What are the im...

What are the important external forces Management has to identify all significant factors which influence a firm. These factors can largely be divided into two categories. Mana

Law of demand, explain the law of demand. briefly discuss the exception to ...

explain the law of demand. briefly discuss the exception to the law of demand

Maximizing profit in firm, how does knowledge of economics help in maximizi...

how does knowledge of economics help in maximizing profit in firm

Aalbania enjoy a comparative advantage, Refer to above figure. Albania refu...

Refer to above figure. Albania refused to engage in international trade for ideological reasons. To maximize its economic welfare it would choose to produce at which point in the d

Theory of multiplier, income generation process through investment multipli...

income generation process through investment multiplier

Opportunity cost, Opportunity Cost This is the amount that is sacrifice...

Opportunity Cost This is the amount that is sacrificed when choosing one activity over the next-best alternative.  In organization, an example of opportunity cost is seen in th

Ramsey pricing, Describe ramsey pricing with detailed examples

Describe ramsey pricing with detailed examples

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd