ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Normal goods are a type of goods whose demand shows a direct relationship with a consumer’s income. It means that the demand for normal goods increases with an increase in the consumer’s income or expansion of the economy (which generally will increase the income of the population).

Detailed explanation-2: -A normal good is a good that consumers demand more of when their incomes increase. An inferior good is a good that consumers demand less of when their income increases.

Detailed explanation-3: -The Bottom Line Demand for normal goods increase as income rises. The income elasticity of demand formula measures the change in demand to a change in income.

Detailed explanation-4: -The demand for a normal good increases if income increases. The demand for an inferior good decreases if income increases.