A Movement Along in the Consumption Function Is Caused by a Change

question 49

Multiple Choice

A movement along in the consumption function is caused by a change in:

• A)real disposable income.
• B)can be caused by a change in the price level.
• C)the marginal propensity to consume (MPC).
• D)none of these.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the total amount they actually pay.

Bananas

A type of edible fruit produced by various large, herbaceous plants in the genus Musa.

Consumer Surplus

The contrast between how much consumers are ready to pay for a good or service versus what they actually spend.

Consumer Surplus

The gap between the intended investment consumers are willing to make in a product or service and their actual financial outlay.