The point where the indifference curve is tangent to the budget line
A) is a point on a consumer's demand curve.
B) is the best affordable point.
C) is where the marginal rate of substitution exceeds the relative price by as much as possible.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

The point where the indifference curve is tangent to the budget line represents the best affordable point, where the consumer maximizes utility given their budget constraint.

The Point Where the Indifference Curve Is Tangent to the Budget