Which factor would shift the demand curve to the right for a normal good?

Which factor would shift the demand curve to the right for a normal good?

• A. A decrease in income.
• B. An increase in consumer income.
• C. A decrease in the price of the good itself.
• D. An improvement in production technology.

Answer: (B)

An increase in consumer income. For a normal good, demand rises when income grows, so at every price buyers are willing to purchase more, which shifts the entire demand curve to the right. This happens because normal goods have positive income elasticity of demand. The other factors relate to movement along the curve (a price drop changes how much is bought at that price) or shift the supply curve (technology improves supply, not demand).

An increase in consumer income. For a normal good, demand rises when income grows, so at every price buyers are willing to purchase more, which shifts the entire demand curve to the right. This happens because normal goods have positive income elasticity of demand. The other factors relate to movement along the curve (a price drop changes how much is bought at that price) or shift the supply curve (technology improves supply, not demand).