CBSE 2020 Class 12 Economics Outside Delhi Set 1

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Question : 23 of 47
 
Marks: +1, -0
Answer the following questions on the basis of given figure:
(i) What does the shaded area AOB indicate?
(ii) What is the significance of point B ?
Solution:
(i) The shaded area AOB indicates "Dissavings".
(ii) At point B, saving is zero and total income is equal to total consumption.
It means:
C=y
APC=cy=yy=1
APS=1−APC
=1−1=0
APS=0
Point B, average propensity to save is zero
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