You are given the following information : Savings function, S, is a function of income Y , ie S=sY) Consumption C,

You are given the following information :

Savings function, S, is a function of income Y , ie S=sY) Consumption C, is a function of income Y ie C=c(Y) Total income Y is equal to consumption C, plus savings S, assuming a closed economy ie Y=C+S(a) Use the above information to derive a savings function given Consumption function C=a+bY (b) Graphically draw the savings function derived in (a) above • (c) Given the consumption function C=200+0.75Y Draw a graph to demonstrate that consumption is an increasing function of income Compute the change in consumption when consumer’s income increase from Ksh 200. 00 to ksh 300. 00 ​


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