What are normal goods in economics?
Understand the Problem
The question is asking about the concept of 'normal goods' in economics, which are goods whose demand increases when consumer incomes rise, and decreases when consumer incomes fall. This inquiry is foundational in understanding consumer behavior and economic theory.
Answer
A normal good is a good that experiences an increase in demand as a consumer's income rises.
A normal good is a good that experiences an increase in demand as a consumer's income rises.
Answer for screen readers
A normal good is a good that experiences an increase in demand as a consumer's income rises.
More Information
Examples include food, clothing, and household appliances.
Tips
Do not confuse normal goods with inferior goods, which see a decrease in demand as income rises.
Sources
- Normal good - Wikipedia - en.wikipedia.org
- Normal Goods - Definition, Graphical Representation and Examples - corporatefinanceinstitute.com
- What are Normal Goods? Definition, Comparisons and Examples - indeed.com
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