Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 1.A, Problem 2P
To determine
The relationship between the income and consumption.
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Students have asked these similar questions
A tax on gasoline is proposed in order to raise money for the pollution-control activities of several
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in revenues from this tax? Explain and use a graph to answer this question.
7. Dependent & independent variables; positive & inverse relationships: Ypsilanti Market
Research conducted a survey to find out whether people who earn more money
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income the survey subjects earned and the price of the car that they purchased.
Price
Income
(Thousands of
dollars per car)
(Thousands of
dollars per year)
0.
10
20
15
40
20
60
25
80
30
100
In the diagram below, draw the graph corresponding to the above table.
The accompanying table shows a portion of quarterly data for real personal consumption (Consumption in $) and real personal
disposable income (Income in $) for the years 2000-2019.
Date
Q1,2000
Q2, 2000
A
Q4,2019
Consumption
8520.71
8603.01
⠀
13411.94
Income
9338.68
9441.95
1
15100.13
pictureClick here for the Excel Data File
a. Construct a scatterplot of Consumption against Income. Given the scatterplot, which statement best describes the relationship
between Consumption and Income?
O Consumption and Income have a positive relationship.
O Consumption and Income have a negative relationship.
O Consumption and Income have no relationship.
O Consumption and Income have a U-shaped (nonlinear) relationship.
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