Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use diagram.

Income= Consumption + Saving

CC curve is consumption function

45° line is Income

BR=OR

At break even point is zero saving, hence saving curve must intersect x-axis at the same income level where consumption curve and 45° line intersect.

So, saving curve must intersect x axis at the same income level where consumption curve and 45° line intersect.