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: -The income demand for superior goods increases with an increase in the income of the people. When income of the people increases, they buy superior goods and avoid the purchase of inferior goods. As a result, the demand for inferior goods fall due to an increase in income.

Detailed explanation-3: -A superior good also may be a luxury good that is not purchased at all below a certain level of income. Examples would include smoked salmon, caviar, and most other delicacies. On the other hand, superior goods may have a wide quality distribution, such as wine and holidays.