An increase in consumer income for a normal good leads to:

An increase in consumer income for a normal good leads to:

• A. A leftward shift in demand
• B. A rightward shift in demand
• C. No change in demand
• D. A movement along the demand curve

Answer: (B)

When income rises, a normal good becomes more desirable and people want to buy more at each price. That causes the entire demand curve to shift to the right, reflecting a higher quantity demanded at every price. This is different from a movement along the curve, which would occur if the price of the good itself changed, not income. A leftward shift would imply demand falls with higher income (as with an inferior good), and no change would mean income has no effect on demand. So the correct description is a rightward shift in the demand curve.

When income rises, a normal good becomes more desirable and people want to buy more at each price. That causes the entire demand curve to shift to the right, reflecting a higher quantity demanded at every price. This is different from a movement along the curve, which would occur if the price of the good itself changed, not income. A leftward shift would imply demand falls with higher income (as with an inferior good), and no change would mean income has no effect on demand. So the correct description is a rightward shift in the demand curve.