Assume that a computer is a normal good. An increase in consumer income, other things being equal, would?

[wal49]

Assume that a computer is a normal good. An increase in consumer income, other things being equal, would:
Answer

a. cause an upward movement along the demand curve for computers

b. cause a downward movement along the demand curve for computers

c. shift the demand curve for computers to the left

d. shift the demand curve for computers to the right

e. a and d

[hyun-su]

The best answer in this case is D: shift the demand curve right. This is because on the basis of it being a normal good, an increase in income should raise the quantity demanded. Because it is not a change in actual price of the good, there should not be movement along the demand curve, but instead a shift in the demand curve.