Question

Study the diagram below, and answer the following questions.


In the above diagram, if the price remains constant and the income of the consumer increases, then the demand for the normal goods will:

[1 mark]

• A. shift the demand curve from d to d1
• B. shift the demand curve from d1 to d
• C. not cause any shift in the demand curve
• D. will cause a movement on the demand curve

Answer 1

The correct option is A shift the demand curve from d to d1

In the case of normal goods, if the income of the consumer increases, then the demand also increases. This causes the demand curve to shift to the right.