Question

When my income doubled, I started watching two movies in the theatre per week (instead of no movies, which was the case before). Movies are goods for me. (Select all that apply.) O a. inferior b. necessary c. normal O d. luxury Next page

Answer 1

Based on the given information, the following options can be selected:

c. normal
d. luxury

A normal good is one for which the demand increases as income increases. In this case, as the income doubled, the person started watching more movies, indicating that movies are a normal good for them.

A luxury good is one that is not considered essential and is associated with higher levels of income. Since the person went from not watching any movies to watching two movies per week when their income doubled, it suggests that watching movies is a luxury for them.

Therefore, the person's behavior suggests that movies are both a normal and a luxury good for them.