Use the following to answer question:
-(Figure: Harold's Indifference Curves)Use Figure Harold's Indifference Curves.If the price of bread is $1 per loaf,the price of cheese is $2 per pound,and Harold has $14 to spend on bread and cheese,Harold's optimal consumption bundle is _____ loaves of bread and _____ pounds of cheese.
A)6;4
B)4;3
C)3;2
D)2;8

Question

Use the following to answer question: 
-(Figure: Harold's Indifference Curves)Use Figure Harold's Indifference Curves.If the price of bread is $1 per loaf,the price of cheese is $2 per pound,and Harold has $14 to spend on bread and cheese,Harold's optimal consumption bundle is _____ loaves of bread and _____ pounds of cheese.
A)6;4 
B)4;3 
C)3;2 
D)2;8

Quizplus · Accepted Answer

Harold's optimal consumption bundle is 6 loaves of bread and 4 pounds of cheese. This is because at this point, Harold's indifference curve is tangent to the budget line, meaning that he is getting the most satisfaction possible from his given budget.

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