Figure 2-6 Income and Consumption
Mathematical Equation
is the equation of the relation just described in words
and displayed in the table. As a check, you can first see that when W
zero, C is $800. Further, you can see that every time W increases by $1,
the level of C increases by 0.8($1), which is 80 cents.
Graph
Figure 2-6 shows the points from the preceding table and the line
representing the equation given in the previous paragraph. Comparison
of the values on the graph with the values in the table, and with the
values derived from the equation just stated, shows that these are
alternative expressions of the same relation between C and W.
C=$ 800 +0.8W