The document discusses consumer equilibrium in choice between goods. It explains that consumer equilibrium is reached at the point where the budget line is tangent to the highest attainable indifference curve, maximizing satisfaction within a limited budget. The first indifference curve shown is not feasible given the budget, while the second could be reached but does not spend the full budget, while the third touches the budget line for maximum utility.

2. Consumer equilibrium
The budget line shown
does not allow a consumer
to reach this indifference
curve. It lies beyond their
feasible set of
consumption possibilities.
Sausages
Chicken
Wings
0
BL1
IC1

3. Consumer equilibrium
IC2 can be reached but
most of the combinations
on this indifference curve
involve not spending all of
the available budget.Sausages
Chicken
Wings
0
BL1
IC1
IC2

4. Consumer equilibrium
Consumer equilibrium is
reached at the point of
tangency between the
budget line and the
highest-attainable
indifference curve.
Sausages
Chicken
Wings
0
BL1
IC1
IC2
IC3
A
B

5. Consumer equilibrium
Consumer equilibrium is
reached at the point of
tangency between the
budget line and the
highest-attainable
indifference curve.
This combination
maximises total
satisfaction with a given
limited budget.
Sausages
Chicken
Wings
0
BL1
IC1
IC2
IC3
A
B