Quantity of DVDs

Marginal utility from DVDs

Quantity of pizza

Marginal utility from pizza 1 180 1 200 2 150 2 180 3 100 3 150 4 90 4 120 5 60 5 100 6 40 6 60

Lisa spends all her income on pizzas and DVDs. The above table shows Lisa's marginal utility for pizza and marginal utility for DVDs. If the price of a pizza is $10, the price of a DVD is $10, and Lisa has $60 to spend on the two goods, what combination of pizza and DVDs will maximize her utility?

b) Pam buys only thread and fabric, and she buys the quantities that maximize her utility. Her marginal utility from a spool of thread is 30 units and her marginal utility from a yard of fabric is 90 units. If the price of a spool of thread is $6, then you are sure that the price of a yard of fabric is ________.