-Max has allocated $100 toward meats for his barbecue.His budget line and an indifference map are shown in the above figure.Which bundle will Max choose?
A) a
B) b
C) c
D) d

Question

-Max has allocated $100 toward meats for his barbecue.His budget line and an indifference map are shown in the above figure.Which bundle will Max choose?
A) a 
B) b 
C) c 
D) d

Quizplus · Accepted Answer

Max will choose the bundle where his budget line is tangent to the highest indifference curve he can reach, which represents the highest level of satisfaction he can achieve given his budget. Bundle B is at this tangency point.

-Max Has Allocated $100 Toward Meats for His Barbecue