ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A normal good is a good that experiences an increase in demand due to an increase in a consumer’s income. Normal goods have a positive correlation between income and demand. Examples of normal goods include food, clothing, and household appliances.

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: -Understanding the Income Effect For normal economic goods, when real consumer income rises, consumers will demand a greater quantity of goods for purchase. The income effect and substitution effect are related economic concepts in consumer choice theory.

Detailed explanation-4: -Normal Goods and Consumer Behavior Larger income leads to changes in the consumers’ behavior. As income increases, consumers may be able to afford goods that were not previously available to them. In such a case, the demand for the goods increases due to their attractiveness to consumers.

Detailed explanation-5: -Detailed Solution. In economics, normal goods are any goods for which demand increases when income increases, and falls when income decreases but price remains constant, i.e. with a positive income elasticity of demand.