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11. Composite good GH Figure 5-1 JN Food 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. The total outlay on food after the excise subsidy is given by

11. Composite good GH Figure 5-1 JN Food 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. The total outlay on food after the excise subsidy is given by

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 4CQ
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11. Composite good Figure 5-1 JN Food 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. The total outlay on food after the excise subsidy is given by.
Transcribed Image Text:11. Composite good Figure 5-1 JN Food 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. The total outlay on food after the excise subsidy is given by.
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