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QUESTION

Suppose that a budget constraint intersects an indifference curve at two separate points. Can either ofthese consumption bundles be optimal?

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Suppose that a budget constraint intersects an indifference curve at two separate points. Can either ofthese consumption bundles beoptimal? 0 Yes, because the indifference curve means that the consumer is indifferent between the two points. 0 No, because there is a bundle at a lower indifference curve that can be purchased with a lower budget.0 Yes, because when the choice is optimal the budget line and indifference curve intersect. O No, because a higher indifference curve can be reached that isjust tangent to the person's budget line.
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