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

question 38

Multiple Choice

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.
Figure 5-1
-In Figure 5-1,the total cost incurred by the government on the excise subsidy is given by _____.

• A)CE
• B)BF
• C)CH
• D)BJ