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In the Following Figure,BC Is the Budget Constraint and IC₁

Question 186

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In the following figure,BC is the budget constraint and IC₁ and IC₂ are two indifference curves of a consumer.Despite IC₂ representing a higher level of satisfaction,why does the optimal bundle for the consumer lie on indifference curve IC₁?
In the following figure,BC is the budget constraint and IC₁ and IC₂ are two indifference curves of a consumer.Despite IC₂ representing a higher level of satisfaction,why does the optimal bundle for the consumer lie on indifference curve IC₁?

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The budget constraint represents the dif...

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