Income Effect on Normal Good Demand

Steps:

• Beef is a normal good, so higher incomes increase consumer demand for it.
• Demand curve shifts rightward from original position.
• Supply curve remains unchanged, intersecting new demand at higher quantity.
• Equilibrium moves from X to a point with higher price and quantity.

Why C is correct:

• Law of demand: For normal goods, income rise shifts demand right, raising equilibrium price and quantity to point C.

Why the others are wrong:

• A: Shows leftward demand shift, which occurs for inferior goods.
• B: Indicates no change in equilibrium, ignoring income effect.
• D: Depicts supply shift, unrelated to income change.

Final answer: C