Economics (AS & A Level) · May / June 2022 · Paper 33 · Question 26

The table shows an individual's planned consumption at different levels of income. income ($) | 100 | 200 | 300 | 400 | 500 consumption ($) | 140 | 220 | 300 | 380 | 460 What can be concluded about changes in the marginal propensity to consume (MPC) and average propensities to consume (APC) as income rises?

1. AMPC constant, APC constant
2. BMPC constant, APC falling
3. CMPC falling, APC constant
4. DMPC falling, APC falling

As printed in the paper