Economics Part B

Consumption capacity curve

The consumption capacity curve shows in graphic form all the consumption possibilities in a particular country. Assuming a country where only two products are consumed. The curve shows the full range of possibilities available to the country to manufacture both products simultaneously.

Consumption capacity curve

The consumption capacity curve shows in graphic form all the consumption possibilities in a particular country. Assuming a country where only two products are consumed. The curve shows the full range of possibilities available to the country to manufacture both products simultaneously.

 

Consumption curve

The curve which describes graphically the relationship between total private consumption by households and total disposable income in the economy. The curve is an important part of the economic theory of Keynes. The consumption curve increases from left to right, and reflects the fact that each increase in disposable income in the economy results in an increase in private consumption in the economy.

 

Consumption capacity curve590Consumption capacity curve