Hello I have an economics question, and am having trouble figuring out the solution. I have provided the question via image. I have also provided the images of the answer options. Thank you (:
4. Consumption and saving Yvette can expect to earn an annual income of $20,000 under normal circumstances and $25,000 in the event that she gets a sales bonus. You can assume that Yvette does not pay taxes, so her total income and disposable income are the same. This table shows Yvette's consumption and saving at the two different income levels. First, find the average propensity to consume (APC) and the average propensity to save (APS) at both income levels. Then, find the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) when Yvette's income rises from $20,000 to $25,000. Income Consumption Saving APC APS MPC MPS $20,000 $19,000 $1,000 V V $25,000 $23,500 $1,500 V V v v Mathematically, it must always be true that Disposable Income = V . Therefore, it must also be true that 1 = v \fYvette can expect to earn an annual income of $20,000 under normal circumstances and $25,000 in the event that she gets a sales bonus. You can assume that Yvette does not pay taxes, so her total income and disposable income are the same. This table shows Yvette's consumption and saving at the t nt income levels. First, find the average propensity to consume (APC) and the average propensity to save (APS) at both income levels. T the marginal propensity to consume (MPC) and the marginal propensity to save (MP5) when Yvette's income rises from $20,000 to $25,00 Income Consumption Saving APC MPC MPS $20,000 $19,000 $1,000 V v $25,000 $23,500 $1,500 V V v v Mathematically, it must always be true that Disposable Income = V . Therefore, it must also be true that 1 = V average propensity to save (APS) at both inco 0.94 Is. Then, find the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) when Yvette's income rises from $20,0 5,000. 1.06 0.90 Income Consumption Saving APS MPC MPS $20,000 1.32 $19,000 $1,000 $25,000 $23,500 $1,500 Mathematically, it must always be true that Disposable Income = . Therefore, it must also be true that 1 =average propensity to save (APS) at both income levels. TI 0.08 the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) when Yvette's income rises from $20,000 to $25,00 0. 10 0.06 Income Consumption Saving APC MPC MPS $20,000 16.67 $19,000 $1,000 $25,000 $23,500 $1,500 Mathematically, it must always be true that Disposable Income = . Therefore, it must also be true that 1 =Yvette can expect to earn an annual income of $20,000 under normal circumstances and $25,000 in the event that she gets a sales bonus. You can assume that Yvette does not pay taxes, so her total income and disposable income are the same. This table shows Yvette's consumption and saving at the two different income levels. First, find the average propensity to consume (APC) and the average propensity to save (APS) at both income levels. Then, find the ma opensity to consume (MPC) and the marginal propensity to save (MPS) when Yvette's income rises from $20,000 to $25,000. Income Consumption Saving APC APS MPS $20,000 $19,000 $1,000 V V $25,000 $23,500 $1,500 V V V v Mathematically, it must always be true that Disposable Income 2 V . Therefore, it must also be true that 1 = v assume that Yvette does not pay taxes, so her total income and disposable income are the same. This table shows Yvette's consumption and saving at the two different income levels. First, find the average propensity to consume (APC) and the average propensity to save (APS) at both income levels. Then, find the marginal propensit 0.10 sume (MPC) and the marginal propensity to save (MPS) when Yvette's income rises from $20,000 to $25,000. 10.00 0.06 Income Consumption Saving APC APS MPC 0.03 $20,000 $19,000 $1,000 $25,000 $23,500 $1,500 Mathematically, it must always be true that Disposable Income = . Therefore, it must also be true that 1 =average propensity to save (APS ) at both income levels. Then, find the marginal propensity to consume ( MPC) and the marginal propensity to save (MPS) when Yvette's income rises from $20,000 to $25,000. Income Consumption Saving APC APS Consumption - Saving MPS $20,000 $19,000 $1,000 Consumption + Saving $25,000 $23,500 $1,500 Saving - Consumption Mathematically, it must always be true that Disposable Income = V . Therefore, it must also be true that 1 =onsumption Saving APC APS MPC MPS MPC - MPS $19,000 $1,000 MPC + MPS $23,500 $1,500 MPS - MPC it must always be true that Disposable Income = . Therefore, it must also be true that 1 =
