When considering her budget,what is the highest indifference curve that a consumer can reach
A)the indifference curve to which the budget constraint is tangent
B)the indifference curve farthest from the origin
C)the indifference curve that intersects the budget constraint in at least two places
D)the indifference curve for which all combinations of goods are affordable

Question

Quizplus · Accepted Answer

The highest indifference curve that a consumer can reach is the one that is tangent to the budget constraint, as this represents the point at which the consumer maximizes their utility while still staying within their budget. This point is known as the optimal consumption point.

When Considering Her Budget,what Is the Highest Indifference Curve That