When consumers' income increases, what typically happens to the demand curve for a normal good?

• A. The demand curve shifts to the right.
• B. The demand curve shifts to the left.
• C. There is movement along the demand curve.
• D. The demand curve becomes vertical.

Answer: (A)

Verified step by step guidance

1. Understand the definition of a normal good: A normal good is one for which demand increases as consumer income increases.
2. Recall the relationship between income changes and demand: When income rises, consumers generally buy more of normal goods, increasing the quantity demanded at every price level.
3. Analyze the effect on the demand curve: Since demand increases at all prices, the entire demand curve shifts to the right, indicating higher quantity demanded for each price.
4. Distinguish between a shift in the demand curve and movement along the curve: A movement along the demand curve happens only when the price of the good changes, not when income changes.
5. Conclude that for a normal good, an increase in income causes the demand curve to shift to the right, reflecting increased demand at all prices.