JAMB Economics 2017 Paper

Concept:The consumption function shows how total consumption ($C$) depends on income ($Y$).Here, autonomous consumption is $10$, and the marginal propensity to consume is $0.6$.Explanation:To find the value of $C$, substitute the given income level into the consumption function.The consumption function is $C = 10 + 0.6Y$.Given that $Y = 20$, replace $Y$ in the equation: $C = 10 + 0.6(20)$.First, multiply $0.6$ by $20$ to get $12$.Then, add the autonomous consumption of $10$ to this result: $C = 10 + 12$.This gives the total consumption value as $C = 22.00$.Answer:The correct answer is B. $22.00$.