Describe the consumer equilibrium in the indifference curve/budget line model

What will be an ideal response?

A consumer equilibrium occurs when the consumer is spending his or her entire income (is on the budget line), and is on the highest attainable indifference curve (is consuming the "best" point on the budget line).The equilibrium occurs at the point where the budget line just touches the highest indifference curve at one point. At this point, the budget line and indifference curve have the same slope, so the marginal rate of substitution (the slope of the indifference curve) is equal to the relative price (the slope of the budget line).