4161EconomicsMedium
The consumer’s optimal purchase of any two goods is the point where?
Athe consumer reaches the highest indifference curve subject to remaining on the budget constraint
Bthe two highest indifference curves cross
Cthe consumer has reached the highest indifference curve
Dthe budget constraint crosses the indifference curve
Correct answer
A. the consumer reaches the highest indifference curve subject to remaining on the budget constraint
Explanation
The correct answer is the consumer reaches the highest indifference curve subject to remaining on the budget constraint.