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Income–consumption curve
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===Normal goods=== [[File:Income consumption curve graph - upward sloping (normal goods).svg|thumb|left|300px|Figure 2: Income-consumption curve for normal goods]] In the figure 2 to the left, B1, B2 and B3 are the different budget lines and I<sup>1</sup>, I<sup>2</sup> and I<sup>3</sup> are the indifference curves that are available to the consumer. As shown earlier, as the income of the consumer rises, the budget line moves outwards parallel to itself. In this case, from initial bundle X<sup>*</sup>, with an increase in the income of the consumer the budget line moves from B1 to B2 and the consumer would choose X<sup>'</sup> bundle and subsequently, with a further rise in consumer's income the budget line moves from B2 to B3 and the consumer would choose X<sup>"</sup> bundle and so on. The consumer would thus maximize his utility at the points X<sup>*</sup>, X<sup>'</sup> and X<sup>"</sup>, and by joining these points, the '''income-consumption curve''' can be obtained.
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