The Value of the Vertical Intercept Is $100 and the Slope

question 11

Essay

The value of the vertical intercept is $100 and the slope is 0.8 in a linear equation for consumption (measured on the vertical axis) and disposable income (measured on the horizontal axis).If disposable income is $1000, what is consumption? State the linear equation and show how you found the answer.

---

Definitions:

Intragroup Merchandising Transactions

Transactions occurring between entities within the same group, often involving the sale and purchase of goods.

Unrealised Profits

Profits that have been earned on paper through an increase in value of assets but have not been realized through a transaction.

Consolidation Process

The method used in financial accounting to combine and report the financial statements of a parent company and its subsidiaries as one single entity.

Allocating Revenues

The process of assigning or distributing revenues to different accounts or periods based on criteria or rules.