Find MPC, MPS, APC and APS, if the expenditure \(E_c\) of a person with income I is given as : \(E_c=(0.0003)I^2+(0.075)I\); when \(I=1000\)

Q.2 (B) (ii) Find MPC, MPS, APC and APS, if the expenditure \(E_c\) of a person with income I is given as : \(E_c=(0.0003)I^2+(0.075)I\); when \(I=1000\)

Doubtly Asked 28 Oct 2026 Board exam · March 2025 hsc 12th Save WhatsApp Report

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Answer: MPC = 0.675, MPS = 0.325, APC = 0.375, APS = 0.625

\(MPC=\frac{dE_c}{dI}=0.0006I+0.075\). At \(I=1000\): \(MPC=0.6+0.075=0.675\).

\(MPS=1-MPC=1-0.675=0.325\).

At \(I=1000\): \(E_c=0.0003(1000)^2+0.075(1000)=300+75=375\).

\(APC=\frac{E_c}{I}=\frac{375}{1000}=0.375\), \(APS=1-APC=0.625\).

Doubtly AI · 28 Oct 2026 AI-verified · Oct 2026 Report

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Find MPC, MPS, APC and APS, if the expenditure \(E_c\) of a person with income I is given as : \(E_c=(0.0003)I^2+(0.075)I\); when \(I=1000\)

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