Marginal Propensity to Consume

T

TheWeekndLuv

New member
Joined
Sep 18, 2013
Messages
6
Okay so I have the function C= 7(sqrtI3+5)/(I+11), Now to find marginal propensity I have to take the derivative in which I can use the quotient rule. Now when I do so it wants me to find marginal propensity at I = 121. I dont get what im doing wrong??? I know I can take out the 7 and multiply it last.

C' = 7 ((I+11)(I3/2+5)'-(I3/2+5)(I+11)')/(I+11)2
= 7(I+11)((3/2)I1/2)-(I3/2+5)(1)/(I+11)2
= 7(121+11)(16.5)-(1336)/(132)2
= 13910/17424

But my answer is still wrong :/ Will someone help me out please!! Thank you!!
 
TheWeekndLuv said:
Okay so I have the function C= 7(sqrtI3+5)/(I+11), Now to find marginal propensity I have to take the derivative in which I can use the quotient rule. Now when I do so it wants me to find marginal propensity at I = 121. I dont get what im doing wrong??? I know I can take out the 7 and multiply it last.

C' = 7 ((I+11)(I3/2+5)'-(I3/2+5)(I+11)')/(I+11)2
= 7(I+11)((3/2)I1/2)-(I3/2+5)(1)/(I+11)2
= 7(121+11)(16.5)-(1336)/(132)2
= 13910/17424

But my answer is still wrong :/ Will someone help me out please!! Thank you!!
Click to expand...
Why do you say your answer is wrong? It looks okay to me.
 
You must log in or register to reply here.
Top