If a good is normal, an increase in consumers' income would shift the _____

Question

Quizplus · Accepted Answer

A normal good is a good for which there is a positive relationship between income and demand. As consumers' income increases, they have more money to spend on goods, including normal ones, which means they will demand more of the good at each price level. This would result in a rightward shift of the demand curve, indicating an increase in demand.

If a Good Is Normal, an Increase in Consumers' Income