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Catrina Yacoub
on Oct 27, 2024

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(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 $10 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

Indifference Curves

Graphs representing different combinations of two goods that provide the same level of utility or satisfaction to a consumer.

Optimal Consumption

The consumption point at which a consumer achieves the highest possible satisfaction from available resources.

Loaves

Units of bread or any baked product that are shaped and sized for slicing, often made from a dough or batter.

  • Analyze how changes in prices affect consumer's optimal consumption bundles.
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Belkis mejiaOct 31, 2024
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