If consumers' incomes rise, the demand curve for a normal good will shift:

• A. to the right
• B. downward and become flatter
• C. upward and become steeper
• D. to the left

Answer: (A)

Verified step by step guidance

1. Understand the definition of a normal good: a good for which demand increases as consumer income rises.
2. Recall that the demand curve shows the relationship between the price of a good and the quantity demanded, holding other factors constant.
3. When income increases, for a normal good, consumers are willing and able to buy more at every price level, which means the entire demand curve shifts.
4. A shift to the right of the demand curve indicates an increase in demand at all price points.
5. Therefore, the demand curve for a normal good shifts to the right when consumers' incomes rise.