the price of the good, which is a normal good, is $4. If there is an increase in consumer incomes, which way will the demand curve shift? Will the quantity demanded of the good increase or decrease?
1 answer
If there is an increase in consumer incomes, the demand curve for the good will shift to the right. This means that at any given price, consumers will demand a higher quantity of the good. So, the quantity demanded of the good will increase.