Type Of Propensity to Consume | Average Propensity Consume | class 12 Microeconomics | Ecoholics

The propensity to consume is of two types: average and marginal. The average propensity to consume (APC) is the ratio of total consumption to total income.
What Is Average Propensity to Consume?
Average propensity to consume (APC) measures the percentage of income that is spent rather than saved. This may be calculated by a single individual who wants to know where the money is going or by an economist who wants to track the spending and saving habits of an entire nation.
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