(Figure: Demand Shift) Which of the following could explain the figure?
A) Consumer income increases in the market for a normal good.
B) Consumer income falls in the market for a normal good.
C) Consumer income rises in the market for an inferior good.
D) Consumer income falls in the market for a luxury good.

Question

(Figure: Demand Shift) Which of the following could explain the figure? 
A) Consumer income increases in the market for a normal good. 
B) Consumer income falls in the market for a normal good. 
C) Consumer income rises in the market for an inferior good. 
D) Consumer income falls in the market for a luxury good.

Quizplus · Accepted Answer

An increase in consumer income for a normal good would shift the demand curve to the right, as consumers are now able and willing to buy more at each price level.

(Figure: Demand Shift) Which of the Following Could Explain the Figure