Which of the Following Correctly Defines the Average Propensity to Consume

question 343

Multiple Choice

Which of the following correctly defines the average propensity to consume (APC) ?

• A) Change in planned consumption divided by change in real disposable income
• B) Planned consumption divided by real disposable income
• C) Real disposable income divided by planned consumption
• D) Change in real disposable income divided by change in planned consumption

---

Definitions:

Supply Of Peaches

The total quantity of peaches that producers are willing and able to sell at a given price over a specified time period.

Price Of Peaches

The cost at which peaches are sold, which can vary based on factors like season and quality.

Bumper Crop

An exceptionally large harvest of crops, often resulting from favorable growing conditions.

Excess Supply

A situation where the quantity of a good or service offered for sale exceeds the quantity demanded at the current price.