What type of goods see an increase in demand as consumer income rises?

The correct response highlights that normal goods experience an increase in demand as consumer income rises. Normal goods are defined as those goods for which demand grows when consumers have more disposable income. Examples include everyday items such as clothing, electronics, and dining-out experiences.

When consumers' incomes rise, they tend to purchase more of these goods due to the increased financial capacity and willingness to spend on quality or quantity that they may have previously foregone. This relationship is a fundamental principle in economics, illustrating how demand responds to changes in consumer income.

Understanding the distinction is crucial. While luxury goods—a subset of normal goods—also see increased demand with rising income, the term "normal goods" encompasses a broader range of products. Inferior goods, on the other hand, experience decreased demand as income rises because consumers shift towards more desirable alternatives. Substitute goods relate to products that can replace one another rather than being directly influenced by income levels. Thus, normal goods represent the category that correctly aligns with demand increases corresponding to income rises.