When the budget constraint is tangent to the indifference curve,what is likely to be the case
A)The consumer cannot be made better off without increasing her income.
B)The consumer is likely to be at a suboptimal level of consumption.
C)Income is at its optimum for a consumer.
D)Indifference curves are likely to intersect.

Question

Quizplus · Accepted Answer

When the budget constraint is tangent to the indifference curve, it indicates that the consumer is maximizing their utility given their budget, meaning they cannot be made better off without increasing their income.

When the Budget Constraint Is Tangent to the Indifference Curve,what