Question

Assume that lobster is a normal good. An increase in consumer income, other things being equal, would result in:

no change in the demand for lobster.

a decrease in the quantity demanded for lobster.

a leftward shift in the demand curve for lobster.

an increase in the quantity demanded for lobster.

a rightward shift in the demand curve for lobster.

Answer 1

^ Perfectly correct, except one thing: are you sure there is an increase in quantity demanded? Or were you thinking of an increase in equilibrium quantity?

Consumer income is a determinant for shifts in the demand curve, which @geerky42 explained. Here, the demand has increased, so it would look something like this:



An increase in the quantity demanded would look something like this:

This is only possible with changes in price.

Answer 2

Yeah I was thinking of equilibrium quantity.