TUTORIAL : CONSUMPTION AND SAVING

1. Given the consumption function is C = 100 + 0.70Yd , find the saving function . Draw and explain about curve for consumption function and saving function. Assume breakeven point at RM150 (10M)

2. Given the consumption function is S = -200 + 0.65Yd , find the saving function . Draw and explain about curve for consumption function and saving function. Assume breakeven point at RM250 (10M)

3. Table below show the disposable income, consumption (C ) and savings(S)

Disposable income	Consumption (C )	Savings (S)
0	80	-80
100	140	-40
200	200	0
300	260	40
400	320	80
500	380	120

Based on table above :

1. Calculate APC, MPC, APS and MPS
2. Create consumption function and saving function
3. If breakeven point is RM 100, draw the consumption function and saving function in graph paper
4. Explain what happen for consumption and saving based on curve at question 3(C )