The Consumption Function Will Shift When

question 107

Multiple Choice

The consumption function will shift when

• A)Autonomous consumption changes.
• B)Induced consumption changes.
• C)Autonomous or induced consumption changes.
• D)Investment changes.

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Definitions:

Mark-up

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost.

Markdown

A reduction from the original or listed price of a good or service, often used to stimulate sales or clear out inventory.

Gross Profit

The financial term for the difference between revenue and the cost of goods sold, before deducting overheads, payroll, taxation, and interest payments.

Markdown

A reduction in the selling price of goods, typically to clear old stock or attract customers.