Multiple Choice
A consumer has preferences over two goods,books and movies.The consumer is currently spending all available income on these two goods and maximizes satisfaction by purchasing ten books and five movies.The price of a movie falls and the consumer optimally chooses to consume eleven books and four movies.From this information we can infer that
A) movies are a normal good for this consumer.
B) movies are an inferior good for this consumer.
C) movies are a Giffen good for this consumer.
D) movies are either an inferior good or a Giffen good for this consumer; we would need information on prices and income to be certain.
Correct Answer:

Verified
Correct Answer:
Verified
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