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,after the excise subsidy the total consumption of other goods increases by _____.
A)0
B)MK
C)KE
D)ME

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.
Figure 5-1 
-In Figure 5-1,after the excise subsidy the total consumption of other goods increases by _____.
A)0 
B)MK 
C)KE 
D)ME

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.
Figure 5-1 
-In Figure 5-1,after the excise subsidy the total consumption of other goods increases by _____.
A)0 
B)MK 
C)KE 
D)ME

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