Briefly explain which of the following statements best describes the conditions for a consumer to maximize utility
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Briefly explain which of the following statements best describes the conditions for a consumer to maximize utility when buying two goods.
1. The consumer should buy the maximum available amount of both goods.
2. The consumer should be on the highest indifference curve possible, given her budget constraint.
3. The consumer should be on the lowest indifference curve possible, given her budget constraint.
4. The consumer should buy equal quantities of both goods.
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