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'