The highest indifference curve that can be achieved, given a budget line, will
A) cross the budget line more than once.
B) touch the budget line twice without intersecting it.
C) be tangent to the budget line.
D) not touch or intersect the budget line.

Question

Quizplus · Accepted Answer

The highest indifference curve that can be achieved given a budget line is the one that is tangent to the budget line. This represents the point where a consumer can achieve the highest level of satisfaction without exceeding their budget.

The Highest Indifference Curve That Can Be Achieved, Given a Budget