Refer to the information provided in Figure 6.1 below to answer the question(s) that follow. 
Figure 6.1
-Refer to Figure 6.1. Assume Tom's budget constraint is AC. At which point does Tom consume only hot dogs?
Definitions:
Reagan Administration
The presidential term of Ronald Reagan, the 40th President of the United States, from 1981 to 1989, known for its conservative policies and the end of the Cold War.
Weapons Deal
An agreement between parties, typically countries or organizations, for the sale and purchase of military arms and equipment.
Oliver North
A former United States Marine Corps lieutenant colonel involved in the Iran-Contra affair during the Reagan administration, known for his role in the sale of arms to Iran.
Nicaragua
A country in Central America known for its dramatic terrain of lakes, volcanoes, and beaches.
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