If a good is considered a normal good,the demand curve will shift ________ when income increases because ________.
A) right; the income and substitution effects move in the same direction.
B) right; the income and substitution effects move in the opposite direction.
C) left; the income and substitution effects move in the same direction.
D) left; the income and substitution effects move in the opposite direction.

Question

Quizplus · Accepted Answer

When a good is considered a normal good, the demand for this good increases as income increases. This is due to both income and substitution effects moving in the same direction, which causes a shift of the demand curve to the right.

If a Good Is Considered a Normal Good,the Demand Curve