The consumer’s optimal purchase of any two goods is the point where ?

A. the budget constraint crosses the indifference curve
B. the two highest indifference curves cross
C. the consumer reaches the highest indifference curve subject to remaining on the budget constraint
D. the consumer has reached the highest indifference curve

Correct Answer: the consumer reaches the highest indifference curve subject to remaining on the budget constraint ✔

Last Updated: June 11, 2019