ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Normal goods are those whose demand increases as people’s incomes and purchasing power rise. As such, a normal good will have a positive income elasticity of demand coefficient but it will be less than one.

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: -Detailed Solution. The correct answer is Demand increases when income increases. A normal good is a good for which demand increases as consumers income increases and demand decreases as consumer income decreases. Normal goods demand is directly proportional to the income of consumers.