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

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.
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

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.
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

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