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Figure: Harold's Indifference Curves
The figure shows three of Harold's indifference curves for bread and cheese.
-(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 kilogram,and Harold has $14 to spend on bread and cheese,Harold's optimal consumption bundle is _____ loaves of bread and _____ kilograms of cheese.
A) 6;4
B) 4;3
C) 3;2
D) 2;8

Question

Use the following to answer questions :
Figure: Harold's Indifference Curves
The figure shows three of Harold's indifference curves for bread and cheese. 
-(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 kilogram,and Harold has $14 to spend on bread and cheese,Harold's optimal consumption bundle is _____ loaves of bread and _____ kilograms 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 kilograms of cheese. This is because at this point, Harold is on the highest indifference curve that he can afford, given his budget constraint.

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