Final answer:
The demand curve for most goods and services slopes downwards, indicating that consumers buy more at lower prices. The demand curve shifts depending on changes in income, with the consumption of normal goods increasing when income rises and decreasing when income falls, tailored by personal preferences.
Step-by-step explanation:
The demand curve for most goods and services is typically downward sloping, reflecting the law of demand which states that, ceteris paribus, as price decreases, the quantity demanded increases, and vice versa. However, this general trend can vary depending on several factors including a consumer's income and personal preferences, which is especially relevant when discussing normal goods. When an individual's income rises, they tend to purchase more normal goods, and this is illustrated by a shift of the demand curve to the right. When income decreases, the demand for these goods typically falls, corresponding with a shift to the left on the demand curve.
Different goods have varying levels of responsiveness to changes in income or price, which is measured by demand elasticity. Table 5.2 illustrates a range of demand elasticities drawn from economic studies, providing insights into how quantity demanded for different goods and services changes in response to income and price changes. In the context of a consumer like Kimberly, her choices will align with the principle that a rise in income leads to an increase in the quantity of normal goods consumed, while a fall in income decreases it, although her exact consumption choices will also be guided by her personal tastes and preferences.