(Table) the Following Table Shows Data for an Employee

question 129

Essay

(Table) The following table shows data for an employee. The employee was hired at $500 per week and then got a raise to $550. Suppose the worker gets an additional $20 per week raise. How much of that extra $20 is saved and how much is spent? What is the marginal propensity to consume?

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Definitions:

Economists

Professionals who study, develop, and apply theories and principles of economics to understand how economies work and to analyze economic policies.

Determinants

Factors that cause changes in the behavior of individuals, systems, or processes, often studied to understand cause-and-effect relationships.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantitatively defined as the percentage change in quantity demanded divided by the percentage change in price.