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 cheese is $2 per pound and Harold has $10 to spend on bread and cheese, Harold _____ his consumption of cheese as the price of bread rises from $1 per loaf to $2 per loaf, indicating that bread and cheese are _____.
A) increases; substitutes
B) increases; complements
C) decreases; substitutes
D) decreases; complements
Correct Answer:

Verified
Correct Answer:
Verified
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