Figure10-3Optimal Consumption Bundle Panel (a) shows Sammy’s budget line and his six possible consumption bundles. If we assume that these goods, potatoes and wings, are perfectly divisible, then Sammy can buy fractions of kilograms. This implies that points in between the consumption bundles (A to F), but still on the budget line, are also attainable.
Panel (b) shows how Sammy’s total utility is affected by his consumption bundle, which must lie on his budget line. The quantity of wings is measured from left to right on the horizontal axis, and the quantity of potatoes is measured from right to left. His total utility is maximized at bundle C, the highest point on his utility function, where he consumes 2 kilograms of wings and 6 kilograms of potatoes. This is Sammy’s optimal consumption bundle.
Panel (b) shows how Sammy’s total utility is affected by his consumption bundle, which must lie on his budget line. The quantity of wings is measured from left to right on the horizontal axis, and the quantity of potatoes is measured from right to left. His total utility is maximized at bundle C, the highest point on his utility function, where he consumes 2 kilograms of wings and 6 kilograms of potatoes. This is Sammy’s optimal consumption bundle.