For Solving the Questions, we need to Remember following formulas
Income = Consumption + Savings
Y = C + S
APC = Consumption/ Income
APC = C/Y
APS = Savings/ Income
APS = C/Y
Example 1
Calculate APC and APS from the following schedule.
Income (Y)  100  200  300 
Consumption (C)  80  120  180 
In this question, we are given Income(Y) and Consumption (C)
We need to first calculate Savings ( S) using formula
Income = Consumption + Savings
Y = C + S
Y  C = S
S = Y  C
Then we can calculate APC And APS Easily
APC = Consumption/ Income
APC = C/Y
APS = Savings/ Income
APS = C/Y
Income  Consumption  Savings  APC  APS 
100  80  20  0.8  0.2 
200  120  80  0.6  0.4 
300  180  120  0.6  0.4 
Note
Sometimes in Question
Disposable income is mentioned
Note that
Disposable income and Income (Y) are same things
Example 3
(i) The disposable income (Y) is ₹ 1200 crores and consumption expenditure (C) is ₹ 800 crores. Calculate the APC.
(ii) If saving is ₹ 500, out of an income of ₹ 5,000, how much is the APS?
(iii) If disposable income is ₹ 1,000 and consumption expenditure is ₹ 750, find out average propensity to save.
(iv) If income is ₹ 500 and saving are ₹ 100, calculate APC.
(v) When income rises from ₹ 1,000 to ₹ 1,100, saving rise by ₹ 30. Find out MPS and MPC.
(i) Disposable Income (Y) = 1200
Consumption expenditure (C) = 800
Calculate APC
(ii) Savings = 500
Income = 5000
Find APS
(iii) Disposable Income (Y) = 1000
Consumption expenditure (C) = 750
Find APS
(iv) Income = 500
Savings = 100
Calculate APC
View Answer
(i) APC = C/Y
APC = 800/1200
APC = 2/3
APC = 0.67
(ii) APS = S/Y
APS = 500/5000
APS = 1/10
APS = 0.1
(iii) APC = C/Y = 750/1000
APC = 0.75
APS + APC = 1
APS + 0.75 = 1
APS = 0.25
(iv) APS = S/Y = 100/500
APS = 0.2
APS + APC = 1
0.2 + APC = 1
APC = 0.8
NCERT Questions
No questions in this part
Other Books
Question 1
Calculate APC and APS from the following schedue:
Income (Y)  100  200  300  
Consumption ( C )  80  120  150 
Income (Y)  100  200  300  
Consumption ( C )  80  120  150  
Savings  20  80  150  
APC  0.8  0.6  0.5  
APS  0.2  0.4  0.5 
Explanation

We need to calculate Savings
Income = Savings + Consumption
Savings = Income  Consumption

APC = Consumption/ Income
 APS = Savings/ Income
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