We can put budget constraints and indifference curves on the same graph to gain insight into how consumers choose their consumption bundles. The graph to the right shows some consumer's budget constraint and several indifference curves.

   The consumer's desire is to obtain the most enjoyment possible given her income and the prices she faces. The highest indifference curve she can reach is the red one, which her budget only touches at one point. This means that (M*,D*) is the best bundle she can afford; this is her utility maximizing bundle. No other affordable combination of movies and dining out will yield more satisfaction.

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