Data on before-tax income, taxes paid, and consumption spending for the Simpson family in various years are given below.

a. Graph the Simpsons' consumption function and find their household's marginal propensity to consume.
b. How much would you expect the Simpsons to consume if their income was $32,000 and they paid taxes of $5,000?
c. Homer Simpson wins a lottery prize. As a result, the Simpson family increases its consumption by $1,000 at each level of after-tax income. ("Income" does not include the prize money.) How does this change affect the graph of their consumption function? How does it affect their marginal propensity to consume?

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Before-tax income (S) 25,000 27.000 28.000 30,000 Taxes paid ($) 3,000 3,500 3.700 4,000 Consumption spending (5) 20,000 21,350 22.070 23,600