The affordable bundle that yields the greatest satisfaction to the consumer is:
A) the maximum bundle.
B) the equilibrium consumption bundle.
C) the allowable purchasing bundle.
D) the most popular bundle.

Question

Quizplus · Accepted Answer

The equilibrium consumption bundle is the bundle at which the consumer's budget line is tangent to the highest indifference curve. At this point, the consumer achieves maximum satisfaction given their budget constraint. Therefore, the equilibrium consumption bundle yields the greatest satisfaction to the consumer.

The Affordable Bundle That Yields the Greatest Satisfaction to the Consumer