Use the Following to Answer Questions

question 96

Multiple Choice

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) Look at the 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