In the context of demand, what is likely to happen if people's incomes increase?

When people's incomes increase, the demand for normal goods is likely to increase. Normal goods are those goods for which demand rises as income rises. This relationship occurs because consumers feel more financially secure and are willing to purchase more or opt for higher-quality products when they have more disposable income.

In contrast, the demand for inferior goods, which are typically lower-quality items that consumers buy when their income is lower, tends to decrease as incomes rise. This means that while demand for normal goods increases, the category of inferior goods experiences a decline in demand. The overall demand does not stay unchanged because income changes significantly influence consumer behavior and preferences. Therefore, with an increase in income, the increase in demand for normal goods reflects a positive shift in consumer purchasing patterns.