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The consumtion function is
C = 0,01Y2 + 0,8Y + 100
(a) Calculate the values of MPC and MPS when Y= 8
(b) Use the fact that C + S = Y to obtain a formula for S in terms of Y. By differentiating this expression find the value of MPS at Y = 8 and verify that this agrees with your answer to part (a)
Svar #1
21. oktober 2011 af Walras
(a)
The marginal propensity to consume is given by
MPC=dC/dY=0.02Y+0.8
In specific
dC/dY(8)=0.02*8+0.8=0.96.
By definition the marginal propensity to save is
MPS=1-MPC=1-dC/dY
Hence, we have
MPS=1-0.96=0.04
(b)
By using the fact that Y=C+S we obtain a formular for S, i.e.
S=Y-C=Y-(0,01Y2+0,8Y+100)=-0.01Y2+0.2Y-100
Find the derivative with respect to Y
dS/dY=-0.02Y+0.2
and insert Y=0.8
dS/dY(8)=-0.02*8+0.02=0.04,
thus MPC equals 0.96, which verifies the results in (a).
I fremtiden er det nok en god idé for dig at huske, at der med ordet "marginal" oftest menes, at det er nødvendigt at differentiere. Hvor har I disse opgaver henne?
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