Topic
Utility Maximisation: Finding the Optimal Consumption Bundle
"Search" for the individual consumer's utility maximising choice of quantities based on indifference curves from different utility functions.
General Objective
An individual consumer maximises his/her utility under the restriction given by his/her budget constraint. In order to understand how this works, this visualisation depicts a budget constraint as well as two indifference curves in the same coordinate system. The utility level of the second indifference curve as well as the chosen quantity of good 1 are interactive, allowing you to “search” for the consumer’s optimal consumption bundle.
Visualisation Group
Go to the visualisation group below, and choose your preferred option for how the visualisation is presented when it first loads.
The purpose of this visualisation is to provide a visual understanding of how an individual consumer maximises his/her utility given the restriction imposed by his/her budget constraint.