Certeris paribus, the effect of a decrease in income on a normal good is to shift the demand curve to the left, reducing both equilibrium price and output.
A normal good is a type of good in which demand increases when income increases. An outward shift in demand will occur when income decreases, for the case of a normal good. However on the other hand, for an inferior good, the demand curve will shift inward noting that the consumer only purchases the good as a result of an income constraint on the purchase of a preferred good.
