Find C, when $¯ C = 200, MPC = 0.5$ and $Y = 1, 000$ .

Open in App

Solution

We know that,

$C = ¯ C + MPC(Y)$

Substituting the values, we get:

$C = 200 + 0.5 (1, 000)$

$= 200 + 500 = 700$

Suggest Corrections

Similar questions

Find S when $¯ C = 200, MPC = 0.4$ and $Y = 1, 000$ .

Find equilibrium Y when: $C = 100 + 0.5 Y$ and $I = 1, 000$

Find equilibrium Y when C = 100 + 0.5Y and I = 1,000.

Find equilibrium S and equilibrium I when Y = 4,400, MPC = 0.75, and $¯ C = 100.$

In an economy, the government makes some additional investment. Find its value when MPC = 0.5 and increase in income = Rs. 1,000.

Join BYJU'S Learning Program