When consumers maximize utility, they obtain:
A) a point of intersection between indifference curves.
B) any intersection of the budget line and the indifference curve.
C) the highest indifference curve that touches their budget constraint.
D) the lowest indifference curve that touches their budget constraint.

Question

Quizplus · Accepted Answer

Consumers maximize utility by reaching the highest possible indifference curve that is tangent to their budget constraint, indicating the most preferred combination of goods they can afford.

When Consumers Maximize Utility, They Obtain