All of the following can be true about the optimal basket consumed by a consumer,except
A) The basket is on the budget line.
B) The person is spending all of their money on the basket.
C) The basket is on the highest indifference curve.
D) The budget line is tangent to an indifference curve at the optimal basket.

Question

Quizplus · Accepted Answer

The optimal basket is not necessarily on the highest indifference curve. It is on the highest indifference curve that touches the budget line tangent.

All of the Following Can Be True About the Optimal