The table below contains data on per person income and per person consumption in Canada for several years.

Year Real income per person Real consumption per person 2015 $60,100 $34,200 2016 $60,000 $34,500 2017 $61,100 $35,400 2018 $61,700 $35,800 2019 $62,000 $35,900 2020 $58,000

a. Draw the consumption function for Canada for these years.

b. What is savings at each level of income?

c. Between 2015 and 2020, how much did income rise?

What about consumption? What was the marginal propensity to consume out of the increase?

Learning Objective 13.2 Apply the four core principles of economics to consumption decisions.