Answer:
According to this approach, a consumer attains equilibrium at the point where the budget line is tangent to the indifference curve. This optimum point is characterized by the following inequality. \[\left| \frac{-dy}{dx} \right|=\left| MRS \right|=\left| \frac{{{P}_{1}}}{{{P}_{2}}} \right|\] That is, Absolute value of the slope of the IC = Absolute value of the slope of the budget line 
In the figure given above, point E depicts consumer equilibrium. At this point, the budget line is tangent to the indifference curve. The optimum bundle is denoted by (\[x_{1}^{*},x_{1}^{*}\]). This point is the optimum or the best possible point. All other points lying on the budget line (such as point B and point C) are inferior to (\[x_{1}^{*},x_{1}^{*}\]) as they lie on a lower IC. Thus, the consumer can rearrange his consumption and again reach equilibrium where the marginal rate of substitution is equal to the price ratio. At points such as B, MRS is greater than the price ratio (i.e., MRS >\[\frac{{{P}_{1}}}{{{P}_{2}}}\]). In this case, the consumer would give up some amount of good 2 to increase the consumption of good 1 such that the equality between price ratio and MRS is again reached. On the other hand, at point such as C, MRS is less than price ratio (i.e., MRS <\[\frac{{{P}_{1}}}{{{P}_{2}}}\]). In this case the consumer would give up some amount of good 1 to increase the consumption of good 2 so that MRS again equals price ratio.
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