Q28 of 50 Page 1

Given saving curve, derive consumption curve and state the steps in doing so. Use the Diagram.

● We can derive the consumption curve from the given saving curve in the following manner.


● Draw a 45° line from the origin.


● Take OC equal to OS on the Y axis


● Draw a perpendicular line from B to B' on OX-axis which intersects at 45° line at point B.


● Join C and B and extend it to get consumption curve CC'



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