A consumer maximizes utility by looking at the tangency of:

Question

Quizplus · Accepted Answer

In order to maximize utility, a consumer must choose a combination of goods that satisfies their budget constraint (represented by the budget line) while also reaching the highest possible indifference curve (representing their level of satisfaction). Therefore, the optimal choice is at the point where the budget line is tangent to the indifference curve, which represents the highest level of utility the consumer can attain given their budget constraint.

A Consumer Maximizes Utility by Looking at the Tangency Of