Assume a Household Would Consume $100 Worth of Goods and Services

Multiple Choice

Assume a household would consume $100 worth of goods and services per week if its weekly income were zero and would spend an additional $80 per week for each $100 of additional income. Letting C represent consumption and Y represent income, the equation that summarizes this relationship is

A) C = 80 + 100Y.
B) C = 100 + .8Y.
C) C = 100 + 80Y.
D) C = 80 + .1Y.