If MPC -0-4 and - Y -1-000- what will be - S -A- Rs 400B- Rs 500C- Rs 600D- Rs 250

The correct option is C Rs 600 Given, MPC = 0.4, Δ Y = 1,000...(1) MPC = Δ C/Δ Y...(2) Replacing values of (1) in (2), 0.4 = Δ C/1000 Δ C = 400 Δ S = Δ Y Δ C ...

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Standard XII

Economics

Ex Ante Consumption

If MPC =0.4 a...

Question

If MPC = 0.4 and $Δ Y = 1, 000,$ what will be $Δ S$ ?

Rs 400

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Rs 500

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Rs 600

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Rs 250

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Solution

The correct option is C
Rs 600

Given, MPC = 0.4, $Δ Y = 1, 000$ ...(1)

MPC = $\frac{Δ C}{Δ Y}$ ...(2)

Replacing values of (1) in (2), 0.4 = $\frac{Δ C}{1000}$

$Δ C = 400$

$Δ S = Δ Y - Δ C$

= 1000 - 400 = 600 Rs

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If MPC = 0.4 and ΔY=1,000, what will be ΔS?

The correct option is C Rs 600 Given, MPC = 0.4, ΔY=1,000...(1) MPC = ΔCΔY...(2) Replacing values of (1) in (2), 0.4 = ΔC1000 ΔC=400 ΔS=ΔY−ΔC = 1000 - 400 = 600 Rs

If MPC = 0.4 and $Δ Y = 1, 000,$ what will be $Δ S$ ?

The correct option is C
Rs 600

Given, MPC = 0.4, $Δ Y = 1, 000$ ...(1)

MPC = $\frac{Δ C}{Δ Y}$ ...(2)

Replacing values of (1) in (2), 0.4 = $\frac{Δ C}{1000}$

$Δ C = 400$

$Δ S = Δ Y - Δ C$

= 1000 - 400 = 600 Rs