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MODEL PAPER 2025 — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsMODEL PAPER 20254 Marks
Question
“Saving curve can be derived from the consumption curve” Justify the statement, citing valid steps with the help of a well-labelled diagram.
✓

Answer

Given consumption curve (C) intersecting 45° line at B (Break-even level of income). Steps for derivation of saving curve from the consumption curve are as follows:
1. Take OA on the negative intercept on Y-axis equals to OC (Autonomous consumption) having positive intercept on Y-axis, as a starting point of the saving curve.
2. Draw a perpendicular from point B (where, Y=C) intersecting the X-axis at B' (where S=0) which is another point on the saving curve.
3. Join point A to point B' extending the line till point S to get the saving curve (AS).
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For Visually Impaired Candidates:
Given consumption curve (C) intersecting 45° line at B (Break-even level of income). Steps for derivation of saving curve from the consumption curve are as follows:
1. Take OA on the neqative intercept on Y-axis equals to OC (Autonomous consumption) having positive intercept on Y-axis, as a starting point of the saving curve.
2. Draw a perpendicular from point B (where, Y=C) intersecting the X-axis at B' (where S=0) which is another point on the saving curve.
3. Join point A to point B' extending the line till point S to get the saving curve (AS).
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