Find C, when $\overline{C}$ = 200, MPC = 0.5 and Y = 1000

CBSE Class 12 CBSE Class 12 Economics
,
1

We know that,
C = $\overline{C}$ +bY (MPC = b)
Substituting the values, we get C = 200 + 0.5 (1000)
= 200 + 500 = 700