Consider the following function:C=100+0.7YWhat is the average consumption when income is 200?Namely, the average propensity to consume

To calculate the average consumption when income is 200, we need to substitute Y (income) with 200 in the given function C=100+0.7Y.

Step 1: Substitute Y with 200 in the function C = 100 + 0.7 * 200

Step 2: Calculate 0.7 * 200 = 140

Step 3: Add 100 to 140 C = 100 + 140 = 240

So, the total consumption when income is 200 is 240.

The average propensity to consume (APC) is calculated as the total consumption divided by the total income.

APC = C/Y

Substitute C with 240 and Y with 200 in the above formula,

APC = 240/200 = 1.2

So, the average propensity to consume when income is 200 is 1.2.