Consumption function is simply a name for the general income consumption relationship.It expresses a relationship between two quantities-income and consumption.It shows the production of the income that shall be devoted to consumption or that shall be spent on consumer goods.In other words,it shows how expenditure varies as income varies.
DEFINITION :-
1."The consumption function shows what changes can be expressed in the consumption from given changes in income." -Hansen
2."Consumption function is nothing more than a statement of the relation between consumption,expenditure and income." -R.G.Lipsey
3."It is a functional relationship indicating how consumption varies when income varies." -Dillard
4."Consumption function may be defined as a schedule showing amounts that will be spent for consumer goods and services at different income levels." -Peterson
DEFINITION :-
1."The consumption function shows what changes can be expressed in the consumption from given changes in income." -Hansen
2."Consumption function is nothing more than a statement of the relation between consumption,expenditure and income." -R.G.Lipsey
3."It is a functional relationship indicating how consumption varies when income varies." -Dillard
4."Consumption function may be defined as a schedule showing amounts that will be spent for consumer goods and services at different income levels." -Peterson
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