Demand is the quantity buyers are willing to purchase at each price. If income rises, demand for cinema tickets (a normal good) tends to:

Demand is the quantity buyers are willing to purchase at each price. If income rises, demand for cinema tickets (a normal good) tends to:

• A. Shift the demand curve to the right.
• B. Move along the demand curve upward.
• C. Shift the demand curve to the left.
• D. Not change.

Answer: (A)

Demand is all the quantities buyers are willing to purchase at different prices. For a normal good, when income rises, people have more money to spend and tend to buy more of that good at every price. So the entire demand curve shifts to the right, reflecting a higher quantity demanded at each price. The price of cinema tickets hasn’t changed here, so we don’t move along the curve; we move the curve itself because overall demand has increased. If it were an inferior good, higher income would shift the curve to the left. If income didn’t affect demand, there would be no shift.

Demand is all the quantities buyers are willing to purchase at different prices. For a normal good, when income rises, people have more money to spend and tend to buy more of that good at every price. So the entire demand curve shifts to the right, reflecting a higher quantity demanded at each price. The price of cinema tickets hasn’t changed here, so we don’t move along the curve; we move the curve itself because overall demand has increased. If it were an inferior good, higher income would shift the curve to the left. If income didn’t affect demand, there would be no shift.