Given a consumption function C = 10 + 0.6Y, determine the value of C if Y is 20

  • A 36.60
  • B 22.00
  • C 30.60
  • D 26.00
jamb 2017economics

The correct answer is B. 22.00

Given C = 10 + 0.6Y when Y = 20

Substitute for the value of Y in the equation to calculate the actual value for C

Therefore, C = 10 + 0.6(20)

C = 10 + 12

C = 22.00

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