Question

If the national consumption function is given by C(y)=4(y+5)1/2+0.9y+3 where y is the national disposable income, find the dC/dy=

Answer 1

To find dC/dy, differentiate each term in the consumption function individually using the power rule and constant rule.

Step-by-step explanation:

To find dC/dy, the derivative of the consumption function with respect to national disposable income, we will differentiate each term in the function individually:

`dC/dy = d(4(y+5)^(1/2))/dy + d(0.9y)/dy + d(3)/dy`

Applying the power rule and the constant rule, we get:

`dC/dy = 2(4(y+5)^(1/2))(1/2) + 0.9 + 0`

Simplifying further:

`dC/dy = 2(y+5)^(1/2) + 0.9`