Assignment no 2 ECO401 Please read the following instructions carefully before attemptingAssignment:Instructions: You are expected to write down the definition of consumption andconsumption function...

Assignment no 2 ECO401 Please read the following instructions carefully before attemptingAssignment:Instructions: You are expected to write down the definition of consumption andconsumption function along with the brief explanation of differencebetween marginal propensity to consume (MPC) and marginal propensityto save (MPS).Also you are required to find out consumption at different levels ofdisposable incomes mentioned in the question below along with thedescription of 450 degree line. Objective of Assignment:This assignment is designed to help you understand: Basic concepts about consumption and consumption function.General Instructions: Please use a 12-point font in Times New Roman/Arial.Don’t use red or blue color in your assignment.Last date for submission of assignment is 10/10/2016.Make sure that you upload the assignment files before due date.No assignment file will be accepted through E-mail after due date.No assignment file will be replaced, once uploaded on LMS underany condition.You can take help from different websites but do not copy them. Tryto do changes according to the requirement of the question.Cheating or copying is strictly prohibited; No credit will be given tocopied files.Justify your each answer about 500 words. Note:Consult lecture no 25-35 for the solution of this assignment. Assignment no 2 ECO401 Assignment Question:A. Define consumption and consumption function.B. Differentiate between marginal propensity to consume (MPC) andmarginal propensity to save (MPS).C. Suppose a household has the consumption function C presented infigure given below.a) Find consumption when disposable income is $8,000 and $10,000.b) Find consumption when disposable income is $6,000. How can ahousehold consume more than its disposable income?c) What is true for every point on the 450 line?(Total Marks = 100) C 9,000B 8,0007,000 Consumption ($) 4506,000 Disposableincome ($) 8,000 10,000