Check sibling questions

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
View Answer

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

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
View Answer

Introducing your new favourite teacher - Teachoo Black, at only ₹83 per month

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling

Made by

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.