For a normal good, an increase in consumer income will cause the market demand for the product to:

a. decrease, which is a shift to the left of the demand curve.

b. increase, which is a shift to the left of the demand curve.

c. decrease, which is a shift to the right of the demand curve.

d. increase, which is a shift to the right of the demand curve.

Question

Business

Celia Bird

19 August, 12:57

For a normal good, an increase in consumer income will cause the market demand for the product to:

a. decrease, which is a shift to the left of the demand curve.

b. increase, which is a shift to the left of the demand curve.

c. decrease, which is a shift to the right of the demand curve.

d. increase, which is a shift to the right of the demand curve.

+1

Answers (1)

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Matthias Pacheco · Answer 1

d. increase, which is a shift to the right of the demand curve.

Explanation:

A rise in consumer's income increases the demand for a normal good. In other words, as people's income increase, the consumption of normal goods goes up. Consumers consider a normal good as a product or service with high utility value.

The demand curve shows the relationship between price and demand for a commodity. A change in price causes movement along the demand curve. When demand changes, the demand curves shift its position in the graph. The demand curve will shifts to the right if the demand increases. A decrease in demand is when less of a commodity is ordered and causes the demand curve to shift inwards or to the left.