A certain economy's consumption function is given by the equation C(x) = 0.85x + 6

Question

A certain economy's consumption function is given by the equation

C(x) = 0.85x + 6

where C(x) is the personal consumption expenditure in billions of dollars, and x is the disposable personal income in billions of dollars. Find C(0), C(50), and C(100).

C(0)	=	billion dollars
C(50)	=	billion dollars
C(100)	=	billion dollars

Answer 1

C(0) = 6

C(50) = 0.85*50 + 6 = 48.5

C(100) = 91