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, so the demand curve shifts to the right. This is because consumers are willing and able to purchase more of the good at every price level due to their higher income.

When a Good Is Normal