When analyzing the relationship between consumer income and the demand for goods, it's essential to understand the distinction between normal goods and inferior goods. Craft beer, as specified in this scenario, is classified as a normal good. This classification plays a crucial role in determining how demand responds to changes in consumer income.

When consumer income rises, the demand for normal goods, such as craft beer, increases. This is because consumers tend to purchase more of these goods when they have more disposable income. Graphically, this is represented by a rightward shift in the demand curve. For instance, if we label the initial demand curve as D1, the new demand curve after the income increase would be D2. At a constant price level, say P1, the quantity demanded increases from Q1 to Q2. This shift illustrates that consumers are willing to buy more craft beer at the same price due to their increased income.

Conversely, when consumer income decreases, the demand for normal goods declines. In this case, with craft beer being a normal good, a decrease in income leads to a leftward shift in the demand curve. Again, if we start with D1, the new demand curve would shift to the left to become D2. At the same price level P1, the quantity demanded drops from Q1 to Q2, indicating that consumers are now purchasing less craft beer due to their reduced income.

In summary, the demand for normal goods like craft beer increases with rising consumer income and decreases when income falls. Understanding this relationship is vital for predicting consumer behavior in response to economic changes.

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