Final answer:
In Economics, the increase in Kimberly's income leads to a shift in her budget constraint, affecting her utility-maximizing choices. Depending on whether the goods are normal or inferior, she may consume more or less of them. This principle is demonstrated using the indifference curve approach in microeconomics.
Step-by-step explanation:
The subject of this question is Economics, and more specifically, it deals with consumer choice theory in the context of a college-level microeconomics course. When Kimberly's income increases, her budget constraint shifts outwards. If both goods she considers are normal goods, her utility-maximizing choice will likely shift towards consuming more of both goods. However, if one of the goods is an inferior good, her consumption of that good may decrease despite the rise in income. Manuel and Natasha's choices with rising incomes also illustrate how personal preferences determine the allocation of additional income between two goods. Economists use the indifference curve approach to illustrate a range of possible responses to changes in income.