Difference between consumption and consumption function?Aacording to me both are same in defenation so experts plz tell me the difference between both?Plz state the example?


Both â€‹Consumption and Consumption function are different concepts. â€‹Consumption implies utilising economic goods (like money) to fulfill the needs. For example, we all use money to purchase various commodities such as food, clothes, TV, mobile, etc. to satisfy our needs. You must note that in economics, consumption is basically referred to the expenditure incurred only on the purchase of final goods. For example, if you buy wheat for feeding your family and yourself, then this is regarded as consumption. However, if you buy wheat for preparing biscuits that you tend to sell in the market, then this cannot be considered as consumption expenditure.
On the other hand, Consumption function depicts the relationship between consumption expenditure and the level of disposable income.

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