When a good is normal:
A) an increase in income raises consumption at each price, so the demand curve shifts to the left.
B) an increase in income raises consumption at each price, so the demand curve shifts to the right.
C) a decrease in income lowers consumption at each price, so the demand curve shifts to the right.
D) an increase in income lowers consumption at each price, so the demand curve shifts to the left.

Question

Quizplus · Accepted Answer

When a good is normal, an increase in income raises consumption at each price, leading to a shift of the demand curve to the right. This is because consumers have more disposable income and are willing to buy more of the good at each price level. Conversely, a decrease in income would lower consumption at each price, shifting the demand curve to the left as consumers have less disposable income to spend on the good.

When a Good Is Normal