Which type of goods sees an increase in demand as income increases?

Normal goods are defined as goods for which demand increases as consumer income rises. This phenomenon occurs because, as individuals have more disposable income, they are able to afford additional or better-quality products, which are classified as normal goods. Common examples of normal goods include items like organic food, branded clothing, and vacations; as consumers become wealthier, they tend to buy more of these goods.

In contrast, inferior goods are characterized by a decrease in demand as income increases, as consumers often switch to higher-quality or more desirable alternatives. Complements and substitutes represent relationships between different goods; complements see an increase in demand when the demand for a related good rises, while substitutes see increased demand when the price of an alternative rises. However, neither of these categories specifically responds to changes in consumer income in the way that normal goods do. Hence, normal goods correctly aligns with the concept of demand increasing with a rise in income.