Pam Buys Only Thread and Fabric, and She Buys the Quantities

question 362

Multiple Choice

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 60 units. If the price of a spool of thread is $4, then you are sure that the price of a yard of fabric is

• A) $4.
• B) $2.
• C) $8.
• D) $12.

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Definitions:

Dark Chocolate

A type of chocolate containing a higher percentage of cocoa solids and less sugar than milk chocolate, known for its potential health benefits.

Daily Values

Nutritional reference amounts labeled on food packages to help consumers see how a food fits into their daily meal plan.

Caloric Intake

The total number of calories consumed through food and beverages over a period of time, critical in managing weight and energy levels.

Iron Requirements

The amount of iron an individual needs to consume to maintain healthy blood levels and support bodily functions.