When graphing the demand curve for a normal good, which direction should the arrow point to indicate an increase in demand?

• A. Downward
• B. Upward
• C. Rightward
• D. Leftward

Answer: (C)

Verified step by step guidance

1. Understand that the demand curve shows the relationship between the price of a good and the quantity demanded, typically sloping downward from left to right.
2. Recognize that an increase in demand means consumers want to buy more of the good at every price level, which shifts the entire demand curve.
3. Recall that a shift to the right on the graph indicates an increase in demand, as it shows a higher quantity demanded at each price.
4. Note that the arrow indicating an increase in demand should point rightward to represent this shift.
5. Therefore, when graphing the demand curve for a normal good, the arrow indicating an increase in demand should point rightward.