Question

Suppose the different income levels are as follows.usi c=120+0.65y and y =100,120,125,140,80,115,145,150,166,200.calculate the corresponding consumption levels using the relationship specified

Answer 1

All you have to do is substitute the y values to the equation to solve the corresponding c values which stands for the consumption levels. To illustrate the solution,

when y = 100,
C = 120+0.65(100)
C = 185

when y = 120,
C = 120+0.65(120)
C = 198

when y = 125,
C = 120+0.65(100)
C = 201.25

And so on and so forth. The answers would be:

y C
100 185
120 198
125 201.25
140 211
80 172
115 194.75
145 214.25
150 217.5
166 227.9
200 250