-According to the Preference Schedule from Problem 1, Rank the Five

question 22

Essay

-According to the preference schedule from problem 1, rank the five students using the Method of Pairwise Comparisons.

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Definitions:

Disposable Income

The sum of funds that families can allocate to expenditure and savings once they've paid their income taxes.

MPC

The marginal propensity to consume, which represents the proportion of an increase in income that is spent on consumption rather than being saved.

Saving

The share of earnings not used for immediate spending but saved or invested for future needs.

Consumption Function

An economic formula representing how consumer spending is related to various factors, including income levels.