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The consumption expenditure \(E_c\) of a person with income x is given by \(E_c=0.0006x^2+0.003x\). Find average propensity to consume, marginal propensity to consume when his income is ₹ 200. Also find his marginal propensity to save and average pro…

Q.2 (B) (ii) The consumption expenditure \(E_c\) of a person with income x is given by \(E_c=0.0006x^2+0.003x\). Find average propensity to consume, marginal propensity to consume when his income is ₹ 200. Also find his marginal propensity to save and average propensity to save.

Doubtly Asked Board exam · March 2026 hsc 12th Save WhatsApp Report
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Answer: APC = 0.123, MPC = 0.243, MPS = 0.757, APS = 0.877

At \(x=200\): \(E_c=0.0006(200)^2+0.003(200)=24+0.6=24.6\).

APC \(=\frac{E_c}{x}=\frac{24.6}{200}=0.123\)

MPC \(=\frac{dE_c}{dx}=0.0012x+0.003=0.0012(200)+0.003=0.24+0.003=0.243\)

MPS \(=1-\text{MPC}=1-0.243=0.757\)

APS \(=1-\text{APC}=1-0.123=0.877\)

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