C=15+0.60+0.04W
I=200
W=1,200
Calculate the value of the equilibrium
To calculate the value of the equilibrium, we need to set the C (consumption) and I (investment) equal to each other, because at equilibrium, the value of consumption equals the value of investment.
Given:
C = 15 + 0.60 + 0.04W
I = 200
W = 1,200
Let's substitute the values in the equation for C:
C = 15 + 0.60 + 0.04(1,200)
C = 15 + 0.60 + 48
C = 63.60
Now we can set C equal to I to find the value of the equilibrium:
C = I
63.60 = 200
Since the value of C is less than I, there is no equilibrium in this case. The consumption is lower than the investment, indicating a surplus in the economy.