Posted by **Mookie** on Monday, March 18, 2013 at 12:50am.

Assume that the average income of an artist is $40,000 per year and that C=0.75Y^P. Further assume that in a good year the artist earns $50,000 and that in a bad year she earns $30,000.

1)Calculate the artist's average propensity to consume on average, in a good year and in a bad year respectively.

2)Calculate the artist's transitory income in an average year, in a good year and in a bad year respectively.

## Answer This Question

## Related Questions

- Finance - Cindy has an income of 56,000 in year 0. Calculate her income in year ...
- precalc - Assume that this year, n = 1, the average annual salary for women in ...
- statistics - Suppose that you are evaluating two different alternatives. The ...
- Personal Finance - Assume that you are 23 years old and that you place $3,000 ...
- Probability - A survey of 1,200 men and women asked, "Do you earn over $75,000 ...
- Fin 324 - Income and retained earnings relationships: Assume that retained ...
- math - vickie earns $20,000 a year as a bookkeeper.if she receive a raise of 2%,...
- math - vickie earns $20,000 a year as a bookkeeper.if she receive a raise of 2...
- math - vickie earns $20,000 a year as a bookkeeper. if she receives a raise of 2...
- Intro Finance - Not sure how to solve: Two Questions: (1)Cindy has income of $...

More Related Questions