Marshallian Cross

The Marshallian Cross is a visual tool used in economics to analyze how consumers decide how much of a good to buy, based on their budget and preferences. It involves two key curves: the budget line, showing all affordable combinations of two goods, and the indifference curve, representing combinations that give the consumer the same level of satisfaction. The point where these two curves touch (tangential point) indicates the optimal purchase choice—maximizing satisfaction within the budget. This intersection helps explain consumer behavior in choosing the ideal mix of goods.