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 $2 per loaf,the price of cheese is $4 per kilogram,and Harold has $28 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 $2 per loaf,the price of cheese is $4 per kilogram,and Harold has $28 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 the indifference curve that is tangent to the budget line is the highest indifference curve that Harold can reach with his budget.

Use the Following to Answer Questions