Why does the optimal consumption bundle occur when the budget line is tangent to the indifference curve?

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Why does the optimal consumption bundle occur when the budget line is tangent to the indifference curve? Assume that the indifference curves are convex?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Mar 26, 2024 11:08 AM

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Why does the optimal consumption bundle occur when the budget line is tangent to the indifference curve?

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Microeconomics An Intuitive Approach with Calculus

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