At a Level of Real Disposable Income of 0, Consumption

question 262

Multiple Choice

At a level of real disposable income of 0, consumption is $4000. Then

• A)saving equals 0.
• B)saving equals -$4000.
• C)savings equal -$4000.
• D)saving equals $4000.

---

Definitions:

Current Supply

The total amount of a particular good or service available to consumers at the current time.

Price Floor

A government- or group-imposed price control that sets the lowest legal price a commodity can be sold at to prevent market prices from falling below a certain level.

Equilibrium Quantity

The amount of products or services available and sought after at the equilibrium price, where the quantity supplied matches the quantity demanded.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers.