“The schedule which shows the functional relationship between total disposable income and total consumption in an economy, is known as consumption function schedule” or “the schedule which shows the different level of consumption at different level of income in an economy, is known as consumption function schedule.”
According to consumption function schedule at zero income level consumption exist and it is positive which represents autonomous consumption which is must for survival. As the income increases consumption also increases, but the rate of increase in consumption is lesser than the rate of increase in income. At lower income levels consumption is more than income whereas at higher income levels income is more than consumption.
| Income |
0 |
40 |
80 |
120 |
160 |
200 |
| Consumption |
20 |
50 |
80 |
110 |
140 |
170 |
