If the equation relating consumption (C) to income \((Y)\) is \(\mathrm{C}=\mathrm{N} 7.500+0.2 \mathrm{Y}\), then ____________
A. consumption is inversely related to income B. consumption is the independent variable and income is the dependent variable C. If income is \(\mathrm{N} 15.000\). the consumption is \(\mathrm{N} 10.500 D. if consumption is \(\mathrm{N} 30.000\). then income is \(\mathrm{N} 10.000\)
Correct Answer: C
Explanation
If \(\mathrm{C}=7500+0.2 \mathrm{Y}\) Then \(C\) (consumption) \(=\) dependent variable. \(\mathrm{Y}\) (income) = Independent variable,lso, the relationship between \(C\) and \(Y\) is positive i.e. \(C\) \(=(C Y)\) So if \(Y\) (-income \()=15,000\), then \(\mathrm{C}=10.500\). \(\mathrm{C}\).
