A certain economy's consumption function is given by the equation
C(x)=0.75x+5
where C(x) is the personal consumption expenditure in billions of dollars and x is the disposable personal income in billions of dollars. Find C(0), C(50), and C(100).
a. C(0)=42.5, C(50)=5, C(100)=80
b. C(0)=42.5, C(50)=80, C(100)=5
c. C(0)=5, C(50)=80, C(100)=80
d. C(0)=5, C(50)=42.5, C(100)=80
e. C(0)=80, C(50)=42.5, C(100)=5
This is so confusing.
Thanks for your help.
Not confusing at all, simply replace wherever you see an x with the given value,
C(x) = .75x + 5
C(0) = .75(0) + 5 = 5
that rules out a), b), and e)
C(50) = .75(50) + 5 = 42.5
so far, only c) works
simply check by finding C(100)
I don’t no the answer
To find C(0), C(50), and C(100), we substitute the values of x into the equation C(x)=0.75x+5:
C(0) = 0.75(0) + 5
= 0 + 5
= 5
C(50) = 0.75(50) + 5
= 37.5 + 5
= 42.5
C(100) = 0.75(100) + 5
= 75 + 5
= 80
Therefore, the values are C(0)=5, C(50)=42.5, and C(100)=80. The correct option is d. C(0)=5, C(50)=42.5, C(100)=80.
To find the values of C(0), C(50), and C(100), we need to substitute the given values of x into the consumption function equation C(x).
Let's calculate them step by step.
For C(0), we substitute x=0 into the equation:
C(0) = 0.75(0) + 5
C(0) = 0 + 5
C(0) = 5
For C(50), we substitute x=50 into the equation:
C(50) = 0.75(50) + 5
C(50) = 37.5 + 5
C(50) = 42.5
For C(100), we substitute x=100 into the equation:
C(100) = 0.75(100) + 5
C(100) = 75 + 5
C(100) = 80
So, based on the calculations, we have:
C(0) = 5
C(50) = 42.5
C(100) = 80
Therefore, the correct option is d. C(0)=5, C(50)=42.5, C(100)=80