Can we say whether movies are a normal good

Reference no: EM132177029

Question: Sarah spends her monthly entertainment budget on books and movies. Sarah's initial utility-maximizing combination of books and movies is five movies and two books a month. Assume the price of books falls. Sarah's new utility-maximizing combination of books and movies is five movies and four books. Given this information, can we say whether movies are a normal good?

Reference no: EM132177029

Questions Cloud

Demonstrates the complex nature of a real-life problem : CHEG 2013 - Material Science and Engineering - illustrate the importance of materials science in a real life situation - present information to an appropriate

How will each of the events affect simone budget : Simone spends $200 a month on voice lessons and dance lessons. She just learned that starting next month her favorite dance instructor is moving out of town.

Research the process of creating a project charter : Identify an organization and site supervisor for your project and to work with your site supervisor to identify an area of need in the environment.

Explain the income effect or the substitution effect : Julian buys plants and flowers every month. Both are normal goods. When the price of flowers fell, Julian purchased fewer plants.

Can we say whether movies are a normal good : Sarah spends her monthly entertainment budget on books and movies. Sarah's initial utility-maximizing combination of books and movies is five movies.

Employee retention and rising gas prices : What category do you think "employee retention" and "rising gas prices" fall into in Southwest Airlines' SWOT analysis?

Formation of expectations and long-term rates : What are the effects of the recent rise in risk and uncertainty on the formation of expectations and long-term rates?

Why giving tote bags make financial sense for organization : An organization that raises money to provide meals for seniors gives tote bags to its donors. Sami thinks it is wasteful to spend donated money on tote bags.

Analyze the macro-environmental forces : Analyze the macro-environmental forces that have caused Braun Buffel to deviate from its traditional retailing concept.

User Account

All Pages