What typically happens to demand when consumer income increases?

When consumer income increases, it generally leads to an increase in demand, particularly for normal goods. Normal goods are those for which demand rises as consumer incomes rise. This can be attributed to the higher purchasing power that consumers experience with increased income, allowing them to buy more goods and services or opt for higher-quality products.

For instance, consider goods like clothing, electronics, or dining out—when people have more disposable income, they are more likely to spend on these items. As a result, the overall demand for these products shifts to the right on the demand curve, indicating a higher quantity demanded at each price level.

On the other hand, for inferior goods, demand may actually decrease with increased income, as consumers typically shift to purchasing higher-quality alternatives. However, the question is focused on the general trend for demand as affected by changes in consumer income for typical cases, which is why increasing demand is the predominant effect observed.