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

Question 57

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.
In Figure 5-1,the total cost incurred by the government on the lump-sum transfer is given by _____. 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 cost incurred by the government on the lump-sum transfer is given by _____. A) CE' B) BF C) CH D) BJ


A) CE'
B) BF
C) CH
D) BJ

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