What typically happens to demand for a product when consumer income rises?

When consumer income rises, demand for normal goods typically increases. Normal goods are products for which demand rises when consumers have more income available to spend. This is because as people's financial situation improves, they are more likely to purchase higher-quality or more desirable versions of products or increase their consumption of certain goods.

For example, if consumers begin to earn more money, they might choose to buy a better brand of clothing or upgrade their vehicle. This increased purchasing power allows them to enjoy goods they may have previously considered too expensive.

In contrast, inferior goods usually see a decrease in demand as consumer income rises because consumers tend to move away from these lower-quality alternatives when they can afford better options. Therefore, in the context of rising income, normal goods experience an increase in demand due to consumers’ enhanced ability and willingness to spend on these items.