1. Suppose the economy consists of three people:

Angelina, Felicia, and Marina. The table shows how their consumer spending varies as their current disposable income rises by $10,000.

Current disposable income Consumer spending Angelina Felicia Marina

$0 $8,000 $6,500 $7,250 10,000 12,000 14,500 14,250

a. Derive each individual’s consumption function, where MPC is calculated for a $10,000 change in current disposable income.

b. Derive the aggregate consumption function.