Figure 5-1 shows the preferences of a consumer for food and other goods.He is initially in equilibrium at point A where the budget line MN is tangent to the indifference curve.
In Figure 5-1,the total outlay on other goods before the excise subsidy is given by _____.
A)0M
B)0N
C)0E
D)0G

Question

Figure 5-1 shows the preferences of a consumer for food and other goods.He is initially in equilibrium at point A where the budget line MN is tangent to the indifference curve.
In Figure 5-1,the total outlay on other goods before the excise subsidy is given by _____. 
A)0M 
B)0N 
C)0E 
D)0G

Quizplus · Accepted Answer

The Answer of Figure 5-1 shows the preferences of a consumer for food and other goods.He is initially in equilibrium at point A where the budget line MN is tangent to the indifference curve.
In Figure 5-1,the total outlay on other goods before the excise subsidy is given by _____. 
A)0M 
B)0N 
C)0E 
D)0G

Figure 5-1 Shows the Preferences of a Consumer for Food