Final answer:
An increase in a consumer's money income shifts the budget line rightward, allowing them to purchase more of both products, represented by a higher indifference curve. The exact change in consumption for each good depends on whether the goods are normal or inferior.
Step-by-step explanation:
The subject of this question falls under the category of Economics, specifically focusing on the effects of income changes on a consumer's budget constraint in microeconomic theory. When a consumer experiences an increase in money income, other things being equal, their budget line shifts rightward because they are now able to purchase more of both products, assuming both goods are normal goods. This rightward shift illustrates that the consumer is able to reach a higher indifference curve, representing a higher level of utility. However, the specific amount by which consumption of each good will rise depends on the consumer's preferences and whether the goods are normal or inferior. Inferior goods may see a decrease in consumption as income rises because the consumer can now afford to purchase more desirable substitutes.
An increase in a consumer's money income does not eliminate the need for economizing because the consumer still has to make choices about how to allocate their limited resources. Therefore, the correct answer to the given multiple-choice question is C. Shifts her budget line rightward because she can now purchase more of both products.