Sarahs new utility-maximizing combination of books and, Microeconomics

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Sarahs new utility-maximizing combination of books and

Problem

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?

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Microeconomics: Sarahs new utility-maximizing combination of books and

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