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Find the change in saving 2/3 of additional income is always spent on consumption current income is 50% then initial income of 50000?
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Find the change in saving 2/3 of additional income is always spent on ...
Change in Saving with Additional Income


In this question, we are asked to find the change in saving when 2/3 of additional income is always spent on consumption and the current income is 50%, given that the initial income is 50000.


Understanding the Problem


Let's first understand the problem statement:



  • Initial income = 50000

  • Current income = 50% of initial income = 0.5 * 50000 = 25000

  • 2/3 of additional income is always spent on consumption



Now, let's assume that the additional income is x.



  • Consumption expenditure = 2/3 of x

  • Saving = x - 2/3 of x = 1/3 of x



Therefore, the total income after the additional income is:



  • Total Income = Initial Income + Additional Income = 50000 + x

  • Consumption Expenditure = Current Income + 2/3 of Additional Income = 25000 + 2/3x

  • Saving = Total Income - Consumption Expenditure = (50000 + x) - (25000 + 2/3x) = 25000 + 1/3x



Calculating the Change in Saving


Now, we need to find the change in saving. Let's assume that the additional income is y.



  • Initial Income = 50000

  • Current Income = 50% of Initial Income = 25000

  • Total Income = Initial Income + Additional Income = 50000 + y

  • Consumption Expenditure = Current Income + 2/3 of Additional Income = 25000 + 2/3y

  • Saving = Total Income - Consumption Expenditure = (50000 + y) - (25000 + 2/3y) = 25000 + 1/3y



Now, the change in saving can be calculated as:



  • Change in Saving = New Saving - Old Saving

  • Change in Saving = (25000 + 1/3y) - (25000 + 1/3x)

  • Change in Saving = 1/3(y - x)



Therefore, the change in savings is directly proportional to the difference between the additional income and the initial income, and is independent of the absolute values of the incomes.
Community Answer
Find the change in saving 2/3 of additional income is always spent on ...
Representing actual income by :AI
change in savings:1
Al:5/100
so therefore :50000×⅔=33,333
33,333×50÷100=16,667
note: change in savings =16,667
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Find the change in saving 2/3 of additional income is always spent on consumption current income is 50% then initial income of 50000?
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