Question: TRUE OR FALSE??? Composite Figure 5-1 Good M K Uz 0 0 RTI LN Food Assume the consumer is facing the following scenario, where the

TRUE OR FALSE???

Composite Figure 5-1 Good M K Uz 0 0 RTI LN Food Assume the consumer is facing the following scenario, where the initial consumer equilibrium at Point A with the tangency point of the budget line HI and the indifference curve. The price of composite good is $1. In Figure 5-1, the amount the government would save by increasing consumer welfare to utility level U2 with a lump-sum subsidy rather than an excise subsidy is distance KM. A
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