Question

Fill in the missing information in the table below.

Disposable income ($)	Consumption spending ($)	MPC
5,000	4,900	n/a
6,000	5,500	???
7,000	6,200	???
8,200	???	0.6
???	7,800	0.8

Answer 1

Ans:

Disposable income ( $ )	Consumption spending ( $)	MPC
5000	4900	n/a
6000	5500	0.6
7000	6200	0.7
8200	6920	0.6
9300	7800	0.8

Explanation:

MPC = Change in consumption spending / Change in disposable income

or

MPC =