Assuming that consumer consumes only two goods, each consumer faces the budget constraint that defines the maximum amount he can spend over bundle of two goods available to him for consumption. With this given level of income, consumer chooses between various alternative bundles of two goods that provide the same level of utility. Curve representing this behavior is called indifference curve. The economic model of consumer choice theory explains the choice that the people have to make among various options of affordable bundles available to them.
Choice theory brings together the budget constraint and indifference curve whereby he chooses the best bundle (maximum utility) with the given level of income.
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