If a consumer does not have convex preferences, then a point of tangency between her indifference curve and her budget line must be an optimal consumption point.

Question

Quizplus · Accepted Answer

For consumers with non-convex preferences, the point of tangency between their indifference curve and their budget line may not be the optimal consumption point due to the possibility of multiple tangent points or kinks in their indifference curves.

If a Consumer Does Not Have Convex Preferences, Then a Point