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Table 1 shows the Consumption, Savings and Tax schedule for a series of gross income. Table 1: Consumption, Savings and Tax Gross Income (Y) Consumption

Table 1 shows the Consumption, Savings and Tax schedule for a series of gross income.

Table 1: Consumption, Savings and Tax

Gross Income (Y)

Consumption (C)

Savings (S)

Tax (T)

0

100

-100

0

500

(a)

142.50

25

1000

665

(b)

50

(c)

1,330

570

100

4,000

(d)

(e)

200

a)Given that, both Consumption and Saving function are linear functions with a constant intercept and slope, find the values of (a), (b), (c), (d) and (e) in Table 1 below. You are required to show your workings.

b.)Based on Table 1, derive the Savings Function

c) Based on Table 1, derive the Consumption Function

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