Consumption Curve

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Consumption Curve

When the consumption function r the consumption income relationship is shown the form of a diagram, we get the consumption curve. In other words, the consumption curve is a geometrical presentation of the consumption function which is drawn on the basis of a given consumption schedule. The following diagram shows the consumption curve which has been drawn on the basis of the data given in the earlier consumption schedule.

Consumption Schedule

Income Consumption Savings
0
100
200
300
400
500
600
700
60
140
220
300
380
460
540
620
-60
-40
-20
0
20
40
60
80

Consumption Curve
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