Which type of good is characterized by an increase in demand as consumer income rises?

The classification of goods based on consumer behavior in response to income changes is an important concept in economics. A normal good is defined as a type of good for which demand increases as consumer income rises. This relationship indicates that as individuals have more disposable income, they are more likely to purchase greater quantities of these goods because they can afford them, often choosing higher-quality or more luxurious options.

For instance, as a person's income increases, they may choose to buy more organic food, eat out at higher-end restaurants, or purchase a new car instead of relying on public transportation. This is a clear illustration of how normal goods are positively correlated with income.

In contrast, the other classifications do not describe this relationship. Inferior goods, for example, experience a decrease in demand as consumer income increases. Substitutes are goods that can be used in place of one another, while complements are goods that are consumed together. These categories focus more on the relationships between two goods rather than their demand based on income levels.

Understanding normal goods is crucial in consumer theory and can help in predicting how changes in income levels affect market demand for various products.