Define Break Even point? Elucidate with the help of saving function.
Answer: Breakeven point is a point where consumption equals to income and saving is equivalent to zero.
![110_break even.jpg](https://secure.tutorsglobe.com/CMSImages/110_break%20even.jpg)
At point E saving is equivalent to zero; therefore point E is termed as Break Even point. To the left of point saving is negative, and to the right of E saving is positive.