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What is the relationship between consumption and disposable income?

What is the relationship between consumption and disposable income, called the consumption function and the one between saving an disposable income, known as the savings function. Does somebody know some good wesites where I can read about this topic?

Public Comments

1. The relationship would be that of inverse proportion. The more your income rises, the less of a percent you spend on consumption
2. Consumption function _is_ the relationship between consumption and disposable income, namely it's a function that gives you the consumption amount given any disposable income. Same for savings function. Consumptions should add up to disposable income. Consumption cannot be negative, but savings can be, if we allow for borrowing or have an open economy. If savings are can be negative, consumptions can exceed disposable income. Finally, it is commonly assumed that consumption is an increasing function of disposable income. The website to read more is wikipedia (sorry, it won't let me post the link)