Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

When income is zero, the person will spend $800 a year (either by
borrowing the money or by spending past savings), and for every extra $1
of income the person will increase spending by 80 cents.


Table


This table shows selected values of the person’s income and
consumption.


Annual Income Consumption Reference Letter

$ 0 $ 800 p

2 500 2 800 q

5 000 4 800 r

7 500 6 800 s

10 000 8 800 t
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