How much will be consumed and how much will be saved

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Q. Assume that 50 candy bars are demanded at a particular cost. If cost of candy bars rises from that cost by 4 percent, number of candy bars demanded falls to 46. Utilizing midpoint approach to Estimate cost elasticity of demand, it follows that

Q. Assume that marginal propensity to consume is constant at 1/2 and breakeven point is $8,000. If income is $10,000, n how much will be consumed and how much will be saved?

Reference no: EM1367592

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