how demand of a commodity is affected when income of the consumer of normal good increases?
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A normal good is one whose consumption increases when income increases.
The demand curve for a normal good shifts out when a consumer's income increases as shown on the left.
It shifts inward when a consumer's income decreases.
The demand for goods also depends upon the income of consumers.
With an increase in income, the consumer's purchasing power increases, because he is now in a position to buy more goods.
Consequently, the consumer's demand for goods increases. ... Normal Goods: Increase in income has a +ve effect on the demand for goods.
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