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

question 33

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 consumption of food after the excise subsidy increases by _____.

• A)0J
• B)GJ
• C)0G
• D)HN

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Definitions:

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