5. Al currently goes to 20 movies a year and buys 20 compact discs. His budget constraint and consumption bundle, E are shown to the right. Al learns that he will get a raise soon moving him to the higher budget constraint. If compact discs are a normal good, his consumption bundle for next year must lie between the points:

   If compact discs are normal goods he will purchase more of them when his income rises. On the lower budget constraint he was purchasing 20 discs so on the higher budget constraint he will purchase a bundle that has at least 20 discs in it. These lie on the region, shown in green to the right, between points B and D.

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