Suppose Maxine initially watches six movies at a price of $3 each and buys nine books at
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Suppose Maxine initially watches six movies at a price of $3 each and buys nine books at a price of $1 each, and then the price of movies increases to $5. To make Maxine’s original bundle just affordable, her income must ________ (increase/decrease) by ________. Her utility-maximizing consumption of movies will ________ (increase/decrease) because at the original bundle, ________ is now less than ________.
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Microeconomics Principles Applications And Tools
ISBN: 9780134078878
9th Edition
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
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