The Consumption Function Is Based on a Number of Assumptions

question 136

Multiple Choice

The consumption function is based on a number of assumptions.Given these assumptions,which of the following statements is true?

• A)Below a certain level of income,APC > 1 and MPC < 0.
• B)The MPC and APC are always less than unity.
• C)As income rises,the MPC falls and the APC rises.
• D)The MPC is greater than zero and less than one,and the APC falls as income rises.
• E)The APC is greater than zero and less than one,and the MPC falls as income rises.

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Definitions:

Channel Member

An entity that participates in the distribution channel, like manufacturers, wholesalers, and retailers, helping goods reach their final consumers.

Retailer's Responsibility

The accountability held by retail businesses to ensure the quality, safety, and ethical sourcing of their products, along with providing good customer service.

Customers' Expectations

The beliefs or standards that consumers have about the performance, value, and quality of goods or services.

High-end Hats

Premium quality hats that are often designer brands, crafted with superior materials, and sold at a higher price point.