Assume a Household Would Consume $100 Worth of Goods and Services

question 186

Multiple Choice

Assume a household would consume $100 worth of goods and services per week if its weekly income were zero and would spend an additional $80 per week for each $100 of additional income. Letting C represent consumption and Y represent income, the equation that summarizes this relationship is

• A) C = 80 + 100Y.
• B) C = 100 + .8Y.
• C) C = 100 + 80Y.
• D) C = 80 + .1Y.

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Definitions:

Salt

A mineral composed primarily of sodium chloride (NaCl), used in food seasoning and preservation, as well as numerous industrial applications.

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A neurotransmitter in the brain that affects mood, emotion, sleep, and appetite regulation, critical in psychological well-being.

Lithium

A chemical element used as a medication, particularly effective in treating and preventing episodes of bipolar disorder.

Posttraumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by severe anxiety, flashbacks, and uncontrollable thoughts about the event.